Snap Inc.

Snap has undergone a massive correction off-late and there is not much in the form of recovery especially in the recent financial results. The company has seen labor supply and supply chain issues along with persistently high inflation, rising geopolitical risks, and rising interest rates which have ultimately resulted in a below par result. Snap failed to meet revenue expectations as well as earnings expectations of Wall Street analysts. Among recent developments, the management has recently announced that it is planning to introduce Snapchat to the web so that users can send snaps and chat with friends through video calls, everything from their desktop. The company released its latest version of Lens Studio, which introduces various features for improving Lens capabilities around depth, reflections, shadows, lighting, and tracing. Lens Cloud has also been launched in the quarter that expands the AR experiences. Snap 3D Asset Manager has also been introduced which facilitates the process of AR Lens creation and manages the 3D product catalog of the businesses. Snap partnered with Vogue to launch an innovative AR Landmarker and exhibition. The company has also partnered with Tiffany and Co to create AR try on Lenses. It has also released Dress Up, the latest AR destination on the platform of Snapchat, allowing users to browse and discover personalized AR fashion and try on experiences from fashion brands, retailers, and creators. We provide the stock of Snap with a ‘Hold’ rating and a revision in the target price.