Snap Inc. shares climbed Friday, following a rating upgrade by Goldman Sachs.
Analysts at Goldman Sachs increased their rating on the technology and camera company to buy from neutral , citing product improvements and feature additions that they believe are bolstering user growth for Snap. The analysts also mentioned that ad tech initiatives from Snap are tailwinds to monetization for the company’s offerings.
Analyst Heath P. Terry of Goldman Sachs emphasized that Snap’s new Android app, the launch of Snap Games and new viral lenses would accelerate user growth. Terry mentioned that total app downloads for May, the first month following Snap’s recent innovations, reached a record 41 million. This, according to Terry, is “a stark reversal of what were otherwise multi-year lows in app downloads".