Snap has been pulling in gains in the last twelve months. MarketWatch analysis showed that the company had grown 189.10% over the past year.
On the 12th of November, Snap Inc (NYSE: SNAP) stock jumped nearly 7% in reaction to the news on the company’s augmented reality (AR) to contribute to ad growth in 2021. CNBC noted that Snap reality strategy relates to e-commerce and is poised to pull in 20% growth in online advertising in the coming year.
With Snap’s AR technology, Deutsche Bank AG (NYSE: DB) has acknowledged that the company is set for further growth in e-commerce. The German bank also raised its price target for Snap in a note published on the 11th of November. Before now, Deutsche Bank’s price target for Snap was $40. Now, the bank has raised its price target to $48 amid a positive 2021 outlook for Snap.
Deutsche Bank wrote:
“We think sponsored lens/filter ads are better positioned to scale at Snap than most investors realize and set to tie in more explicitly with the company’s heretofore somewhat vague e-commerce strategy. We think the company is on the cusp of rolling out more AR shopping experience, including virtual stores.”
Deutsche Bank added that AR lens and Filter ads may climb $4 billion in revenue in the coming years. The AR technology allows users to edit computer-generated images into other pictures. That way, a user can virtually try out an item of their interests. Some companies have already employed the AR technology, which allows users to try out their brands virtually.
In 2019, the Italian luxury brand Gucci introduced AR technology to help potential customers make preferable purchasing decisions. At that time, the Italian fashion company introduced AR for its Ace sneakers.
Other companies that have initiated AR technology are ASOS (LON: ASC), Toyota Motor Corporation (NYSE: TM), Adidas AG (OTC: ADDYY), and more.
Morgan Stanley Predicts 20% Ad Growth in 2021, Snap Stock Rises
In addition, investment banking giant Morgan Stanley (NYSE: MS) has published an analysis to highlight that online advertising may rise by 20% in 2021. Morgan Stanley noted that consumers have shifted to online purchasing during this stay-home period. Hence, brands are now paying more attention to online advertising.
Considering the rise in digital ads, Morgan Stanley has also upped its 2020 ad forecast by 8%.
“Big picture, we continue to view advertising as being cyclical and see faster GDP growth leading to more ad spend across more industries… as companies spend to reach the recovering/re-opening consumer,” experts wrote.
Recently, Coinspeaker has already informed that Snap is acquiring voice assistant startup Voca.ai. The report explained that the startup “builds AI-based voice assistants for customer support services.” According to the media outlets, the acquisition is worth $70 million.
Snap has been pulling in gains in the last twelve months. MarketWatch analysis showed that the company had grown 189.10% over the past year. Also, Snap has climbed nearly 147% in its year-to-date record. In addition, the company has risen 85.80% in the last three months and nearly 45% over the past month. Currently, Snap is 0.62% up and trading at $40.55 in after-hours trading.
Despite recent increases, however, Snap has lost 11.19% in the last five days.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
