Slumping Snap Shares Jump After Company Launches Web Version - Forbes

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Topline

Paid Snapchat subscribers can now access the platform’s instant messaging and video call features on web browsers for the first time ever, its parent company Snap announced Monday, spurring a rise in shares of the company’s sputtering stock.

Key Facts

The web version is accessible starting Monday for users of Snapchat Plus, Snap’s $3.99 monthly subscription service introduced last month, for users in the U.S., U.K., Australia, Canada and New Zealand.

Shares of Snap rose 3% to $14.06 during morning trading, outpacing more modest broad market gains.

However, Snap stock is still down 69.8% year-to-date and is a far cry from its $83.34 high in September 2021.

Key Background

Snap shares fell more than 40% on May 24 after the company said it expected to fall short on its quarterly sales and profit estimates due to a “macroeconomic environment [that] has deteriorated further and faster than anticipated.” Forbes estimates Snap’s founder and CEO Evan Spiegel is worth $3.4 billion, down nearly eight billion from last year. The Snapchat web version is the latest feature rolled out by Snap in recent weeks. Snapchat Plus launched June 29, giving users access to minor cosmetic features, though it doesn’t allow users to turn off ads. The Financial Times reported last week that Snap is in the early stages of incorporating NFTs onto the platform.