Analysis of Snapchat share price for trading

Since its introduction onto the stock markets in March 2017, Snapchat shares attract increasing numbers of investors from around the world that wish to speculate on the future of this high tech company that is surfing on the wave of social networks. If you too are thinking about investing in Snapchat shares online or speculating on the share price then we recommend that you read this important information in our detailed review of this company and its activities as well as necessary data such as the real time share price and a technical analysis of historical data since its IPO that will assist you in implementing an effective trading strategy.  

75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.


About the Snapchat Group:

The Snap Company, previously called Snapchat, is known for creating a free photo and video sharing application for mobile phones. It was created by students from Stanford University in the United States. Although this photo sharing system is not original, Snapchat’s time limit aspect on the viewing of media sent by users is unique. This time period varies between 1 to 10 seconds.

Snapchat was recently introduced onto the stock markets; it was valued at 24 billion dollars in the beginning of 2017.

The profits of the Snap Group are generated in several ways, here are the major ones:

  • Advertising revenue through the Discover space.
  • The purchase of bonuses notably enabling the second viewing of a received file.
  • The purchase of filters created by users according to their geographical location or their personal events, called ‘Geofilters on Demand’.
  • The sponsoring of Geofilters or lenses by brands.
  • The advertising displayed on the application between the different views of media or the different ‘snaps’ or during the viewing of the ‘story’.


Snapchat’s main competition:

Snapchat is currently one of the most popular social networks in the world. However, even though it has successfully won over its users’ hearts, the company remains strongly rivalled by various other big companies. It is essential that you’re familiar with Snapchat’s competition before you begin trading its shares, which is why we want to provide you with a worldwide ranking of the biggest social networks in terms of number of users.

  • Facebook is, of course, number one with over 2 billion active users per month, as of 2017.
  • Youtube comes in second with 1.5 billion users per month.
  • WhatsApp ranks third with 1.2 billion users per month.
  • Google Hangouts is fourth with 1 billion active users per month.
  • WeChat is fifth with 889 million active users per month.
  • Chinese company Tecent QQ ranks sixth with 877 million monthly users.
  • Instagram ranks seventh with 700 million active users per month.
  • Google + ranks eighth with its 359 million users per month.
  • Twitter is ninth with 328 million users every month.
  • Finally, Snapchat is ranked tenth worldwide with 300 million active users per month.


Snapchat’s main partners:

  • In 2014, Snapchat partnered up with Square, a company specializing in smartphone payments, as part of a strategic partnership.
  • In 2017, French bank BNP Paribas established a marketing partnership with Snapchat in order to reinforce its presence on social networks in an attempt to modernize itself in the eyes of active young people.
  • Still in 2017, entertainment giant Time Warner announced an investment of over 100 million dollars on content as well as advertising on Snapchat.


Analysis of the Snapchat share price:

The Snapchat share price is currently quoted on the Main Market of the NYSE and integrated into the calculation of the Nasdaq stock market index.

It was in 2017 that Snapchat shares were first introduced on the stock market with a price of $27. Initially they followed a falling trend due to an overvalued estimation. The price reached $19.51 in the middle of the month of March. It then rose to $22 before experiencing a minor drop.

It is difficult to anticipate the next movements of this share price due to the little history that we currently have at our disposal.


Economic and financial history of the Snapchat Company:

To enable you to better understand how the Snapchat share price may vary in the future we offer you the opportunity here to examine with us the recent economic and financial history of this company with the dates of important events relating to the company.

  • It was in 2011 that the Snapchat application was launched in the Apple App Store. It wasn’t until November 2012 that the application was also available for Android.
  • In 2013, only two years after its launch, Snapchat received an investment of 13.5 million dollars from the Benchmark risk capital company. In the same year the Facebook Group launched an acquisition bid for the application of 3 billion dollars that was rejected after a preceding refusal of a one billion dollar bid. The Chinese company, Trecent, had also made an acquisition bid of 4 billion dollars, again rejected, as had Google, although their bid amount remains unknown.
  • In the beginning of 2014, Snapchat experienced the hacking of 4.6 million SnapchatDB accounts only a few days after an alert by the Gibson Security Company concerning weaknesses in their application security. Of course, since then Snapchat has improved their security. The same year, in October, Snapchat announced the publishing of advertising messages on their application in the form of photos or videos without geographical targeting that the users can choose to view.
  • At the end of 2014, Snapchat collaborated with the Square payment service to propose a messaging service named Snapcash enabling users to send money to each other. In December leaks relating to emails exchanged between Sony and Snapchat gave rise to rumours of the group possibly launching their own music label concentrating on certain artists that they wished to promote on their platform. 
  • At the beginning of 2015 the Snapchat Group announced the launch of a media publishing service named Discover. This service had the objective of monetising the content offered by Snapchat and creating an advertising space destined for the advertisers who so wished. Still in 2015 the number of estimated Snapchat users amounted to 200 million active subscribers. It was also in 2015 that Snapchat experienced its strongest growth at over 55%, notably due to the publicity displayed by different advertisers.

In 2016 the Snapchat Group purchased the Canadian company Bitstrips, publisher of the Bitmoji application that enables the creation of personalised avatars in cartoons, for 100 million dollars. Still in 2016, Snapchat bought the Vurb application that enables the reservation of events and services close to people’s homes for an amount of 110 million dollars. Finally, around September, Snapchat announced a change of name to Snap Inc as well as the launch of a pair of sunglasses connected and equipped with mini cameras, called Spectacles.


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Where to trade in Snapchat shares online?

Although fairly recent, Snapchat shares can now be traded on the stock markets through the best online brokers. You simply need to open an online trading account to buy or speculate in them.

Trade in Snapchat shares now!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.