Snap Inc [NYSE:SNAP], the owner of Snapchat, continues to surprise us all. Their shares increased by a stunning 47.01% this morning.
Their elevated success comes as no shock, but this monstrous surge definitely does stand out.
Snap’s market cap now sits at US$24.892 billion. The American app development company’s shares have been rising all throughout the morning as it was sitting on 37% earlier.
Their shares have been solid over the past year, as they released their quarterly earnings and full 2017 highlights today on their official website.
The reason for the sudden rise in share price
Back in November last year, Snap revealed its latest redesign, which was set to take place going into 2018. The design is still in the process of rolling out worldwide.
This sudden change took many by surprise and only increased the recognition of the app.
The new design implemented a feature which made celebrity stories more viewable, vastly increasing celebrity’s images.
Instead of giving out their snap across different platforms, snapchat would promote celebrity users themselves.
The marketing department at Snap seem to know what they’re doing! Kylie Jenner, one of Snapchat’s famous users, celebrated the birth of her baby through Snapchat yesterday. This may have contributed to the app’s sudden increase.
Snap’s plans for the future
Snap isn’t keen to slow down yet. They may have a vast amount of celebrities using their app daily, but the app titan wishes to continue their innovation.
According to CEO Evan Spiegal, Snapchat intends to grow across different platforms and go beyond just being a mere app. They want to begin with making stories accessible on the web and continue to grow beyond that.
Spiegal feels strongly that stories the app provides should not only be restricted to the mobile app. This will not only increase the brand’s recognition, but also influence more celebrities and well known figures to access Snapchat.
Snap isn’t afraid of making big jumps in order to branch out the app’s usability. If small changes can create such an impact in their shares, then who knows what transferring to new platforms may do.
Publisher, Money Morning