Snapchat’s (SNAP, $11.86) latest venture into video gaming shows promise
In a move to get people spend more time on its app, Snapchat is launching a new gaming platform called Snap Games that features original games only available on Snapchat through its group chats.
The move is timely as its user numbers have recently declined coupled with stiff competition from Facebook’s Instagram.
The game will focus on multiple players in real time. Starting with six games, these will be directly available on the app. Plus, the gamers can also score extra points by watching six second ads on the app. These could be veritable sources of revenue for the company.
With this move, Snap will be joining forces with companies that are exploring the video gaming streaming market. For example, Apple (AAPL) launched a new game subscription service called Apple Arcade and Google (GOOGL) launched a gaming platform called Stadia. The gaming demographic has widened now and companies are no longer looking at a teenage male.
Snapchat believes it could stay relevant by rolling out a service in which its games will enable communication among players during the game. This will make it easier for players who previously had to convince their friends to join the games they had first downloaded from the app store.
SNAP's RSI Oscillator is staying in oversold zone for 1 day
It is expected that a price bounce should occur soon.
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Notable companies
The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Baidu (NASDAQ:BIDU), Pinterest (NYSE:PINS), Tencent Music Entertainment Group (NYSE:TME), Snap (NYSE:SNAP), Twilio (NYSE:TWLO), Zillow Group (NASDAQ:Z).
Industry description
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
Market Cap
The average market capitalization across the Internet Software/Services Industry is 60.93B. The market cap for tickers in the group ranges from 1.11K to 1.94T. GOOGL holds the highest valuation in this group at 1.94T. The lowest valued company is MSEZ at 1.11K.
High and low price notable news
The average weekly price growth across all stocks in the Internet Software/Services Industry was -1%. For the same Industry, the average monthly price growth was -0%, and the average quarterly price growth was 2%. TRFE experienced the highest price growth at 53%, while QQQFF experienced the biggest fall at -58%.
Volume
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 15%. For the same stocks of the Industry, the average monthly volume growth was 9% and the average quarterly volume growth was -8%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 45
P/E Growth Rating: 72
Price Growth Rating: 59
SMR Rating: 84
Profit Risk Rating: 92
Seasonality Score: -9 (-100 ... +100)