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Buy Snap on Its Role With Millennials: Stifel
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Shares of Snap Inc. (SNAP), the parent company of photo and video sharing app Snapchat, jumped this week on a bullish research note from a team of analysts on the Street who say
that it is the favorite social media platform among Millennial users.
The firm suggests that while “Snapchat remains in the experimental bucket for many marketers” who “give it high markets for its creative possibilities
and its ability to attract youth audience,” many still do not feel compelled to buy in.
Given advertisers eventually come to see that Snap is still all the rage among
America’s youth, the company could benefit from a major boost in revenues.
The note contrasts with a report from ad researcher eMarketer on Monday
that lowered its forecast for Snap’s revenue in 2017, down from $770 million to $642.5 million.
Since Millennials represent a key ad market, Stifel suggests investors may be overlooking a major advantage Snapchat has over its rivals.