“It’s not TV, It’s Snap” could soon appear on the company’s marketing material. OK, that might be a stretch, but Snap Inc (NYSE:SNAP) has partnered with Time Warner Inc (NYSE:TWX) via a $100 million content deal — one that does have a few bulls on SNAP stock finally springing back to life.

I think it will take a while if and when the market changes its tune on Snap, which continues to struggle because it isn’t Facebook Inc (NASDAQ:FB). But how much can Time Warner really hope to energize this social media upstart?

Changing Snap’s Narrative?

The upstart popular messaging app (that calls itself a camera company) is working to diversify its revenue stream. CEO Evan Spiegel has discussed his vision of Snapchat one day becoming a next-generation TV platform — one that can rival streaming giant Netflix, Inc. (NASDAQ:NFLX).

To that end, he’s just taken one huge step. But will Wall Street care?

On Monday, Time Warner — parent of Warner Bros., HBO and Turner, whose networks include CNN, TNT and Cartoon Network — announced it had signed a two-year, $100 million deal with SNAP that calls for Time Warner to deliver up to 10 original shows per year from its Turner and Warner Bros units.

SNAP stock rose almost 2% on the news, suggesting the market (at least for a day or two) is willing to give the company a chance despite the company now straddling its IPO price of $17 per share.

“This partnership is another exciting step as we continue to branch out into new genres, including scripted dramas, comedies, daily news shows, documentaries and beyond,” Snap’s content chief Nick Bell said in a statement Monday.

Terms of the newly announced content deal, which will come in various genres, including scripted dramas and comedies, suggests Time Warner’s HBO could be a big factor in the growth of Snapchat’s messaging app. The Wall Street Journal noted that HBO — which delivered dominant must-see-TV hits such as Game of Thrones, a huge success with SNAP’s millennial demographic — could develop shows for the app in the future.

Separation From Facebook

I won’t rush to call this deal a game-changer for Snap, which has been ramping up its original content deals with the likes of Walt Disney Co’s (NYSE:DIS) ABC and Comcast Corporation’s (NASDAQ:CMCSA) NBCUniversal, as well as A&E, Scripps and MGM. But given the creative dominance of Time Warner and its strong intellectual property from its movie studio, cable networks and TV, this venture of original programming could reset the narrative.

Not to mention this new deal could open the door for other heavyweight networks, which would then help SNAP better distance itself from Facebook, particularly in live sports coverage. Twitter Inc’s (NYSE:TWTR) 2016 experiment with the National Football League to stream Thursday Night Football demonstrated that there’s a growing appetite for live events, which in turn can make the social media product more engaging.

In the case for SNAP stock, which lost $2 billion in the first quarter, it needs revenue growth. And there are few ways prove to advertisers, who are grappling with how to reach younger viewers online and on mobile devices, they can get a better return from their ad dollars than to show consistent engagement and rising daily active users.

With Facebook’s own attempt at original content — including deals with Vox Media, BuzzFeed, ATTN, Group Nine Media and other content creators — SNAP can’t afford to be tuned out.

Bottom Line for SNAP Stock

Snap shares closed Monday at $17.88, down 23% since we last discussed its prospects. The stock — which soared 44% to high of $29.44 on its first trading day as a public company — has snapped back to reality.

I won’t go so far to say “I told you so,” but you were warned.

SNAP stock, in the near-term, will continue to show some choppiness, especially as the company’s core ad systems is being retooled.

However, an argument can be raised that SNAP — now near its IPO price — is oversold. The $2 billion loss in the first quarter still is fresh on investors’ minds, and with the lockup expiration coming up at the end of July set to unleash several new shares into the market, things can still get worse for shareholders before they get better.

But for those with longer-term holding periods and an appetite for risk, Monday’s news combined with a potentially cheaper price in SNAP stock over the next few months could present a solid buying opportunity.

As of this writing, Richard Saintvilus did not hold a position in any of the aforementioned securities.