Snapchat stock forecast analysts tracking Snapchat stock

Analysts tracking Snapchat stock forecast note that daily active users reached 397M, reflecting a strong platform stickiness. This DAU figure underpins growth assumptions and could push medium-term targets toward $15 if retention rates hold. Snap is working on a number of initiatives to improve performance for advertisers in order to attract their marketing dollars. Snap's latest 7-0 Pixel Purchasing model is designed to optimize ad campaigns for clicks and conversions rather than reach (views). The company says online jewelry retailer James Allen recently saw an 18% drop in cost per action (CPA) and a 67% increase in its return on investment thanks to the new Pixel model. Snap generated $1.34 billion in revenue during the second quarter, which was a modest increase of 9% from the year-ago period. It will take time for the company's advertising innovations to bear fruit, but some of the positive results businesses are yielding so far could drive significantly more spending in the future, accelerating Snap's revenue growth in the process. Based on recent earnings releases, Snapchat stock forecast gains credibility as management improves cost efficiency. The $450M quarterly revenue beat market estimates, fueling speculation of bullish momentum into July. However, volatility is still above sector average at 2.8%.