TICKERS MENTIONED
- SNAP - SHORT
- YELP - SHORT BENCH
KEY POINTS
- Advertisers warming up to SNAP? The premise supposedly being that SNAP is reducing advertiser friction by making it easier to convert traditional ad creative into SNAP's vertical format. Even if that was the cure-all for advertiser demand, it only addresses one side of the equation. We suspect SNAP's ad inventory remains an issue since its DAUs appear to be spending most of their time in sections of the app that are harder to monetize (see the first section of note bellow for detail).
- Context Cards sounds interesting: It's an enhancement to the Snap Map section of its app that provides its users with business reviews (TRIP) and the ability to reserve tables (OPEN) & rides (Uber/Lyft) directly within its app. We think it's an interesting addition that potentially expands the scope of the app down the road. Presumably there should also be some form of a revenue share on any bookings SNAP sends toward its partners, but we're not expecting much here initially.
- ...But not a material threat to YELP: YELP wasn't mentioned as one of SNAP's partners (link), so the implication is that YELP would be the net loser, especially since Context Cards could conceivably exacerbate what we suspect is a growing inventory problem for YELP. However, Context Cards doesn't appear to be a standalone service since it's specifically tethered to snaps, so it won't compete as a directory/review site.
SNAP | Post-Print Thoughts (2Q17)
08/11/17 01:01 PM EDT
[click here]
Let us know if you have any questions or would like to discuss further.
Hesham Shaaban, CFA
Managing Director
@HedgeyeInternet
