Snap (NYSE:SNAP) shares are rising on Monday, up about 5%. The move comes on news that the company plans to add a desktop version to its platform. While SNAP stock is rallying today, it will need more positivity to erase this year’s loss, as it’s down nearly 70%.
After a decade of solely operating as a mobile app, Snap is getting some positive feedback after announcing its desktop version. Called Snapchat for Web, users will soon be able to make video calls, send snaps and messages to friends from their computers. The desktop version will mostly focus on its messaging feature versus the stories feature.
Users in Australia and New Zealand will be the first to try it out. Snapchat Plus users in Canada, the U.S. and the U.K. will also be able to use Snapchat for Web. The program launched in June for $3.99 per month and offers more advanced features. As for when Snapchat for Web will launch, “soon” is all we know for sure.
This news comes at a pivotal time, as Snap is set to report second-quarter earnings on Thursday.
Can This Drive Snap Stock Higher?
It’s no secret that it’s been a difficult time for SNAP stock and other social media companies. Meta Platforms (NASDAQ:META) and the suddenly Musk-less Twitter (NYSE:TWTR) have not performed well this year, either. Social media stocks have been pressured and banged up. That’s partly due to the selloff in tech and growth stocks and partly due to worries of a recession.
However, investors are optimistic that a desktop version will not only increase user growth and time spent on the platform for Snap, but also increase ad revenue. SNAP stock has had a horrendous stretch, as it’s now down 83% from its all-time high in September.
Investors may recall Snap’s better-than-expected earnings in February sent the stock higher. Shares rose almost 60% in a single session, but later fell 43% in a single day following an intra-quarter warning that its EBITDA and revenue would come in below the low-end of its prior outlook.
In a Securities and Exchange Commission (SEC) filing, Snap said, “Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated.”
Analysts will be particularly focused on Snap’s results, because the company is the first of the major ad-supported app makers to report earnings this period. Many advertisers have reeled in their spending as inflation has run through the economy.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
