Snap Inc. (SNAP) announced today that it will stream its Snap Partner Summit on June 11, 2020, and is expected to reveal exciting developments in augmented reality and gaming.
The virtual event will feature a keynote address by Snap Inc. co-founders Evan Spiegel, CEO, Bobby Murphy, CTO, and other team members from across the company. New product features and partnerships will be announced around Snap’s augmented reality offerings, Discover content platform, developer and creator ecosystems, and more. Video breakout sessions which go deeper will be made publicly available following the conclusion of the keynote.
“We deeply value our partners and the role they play in empowering our community to express themselves, live in the moment, learn about the world, and have fun together. We’re looking forward to celebrating our partners and sharing more about the future of the products and platforms that we’ve been building together,” said Evan Spiegel.
In a letter to investors last Friday, Justin Post of Merrill Lynch maintained a Buy rating for Snap and raised the price target from $17 to $20, stating that Snap has a compelling engagement opportunity around gaming. “We anticipate announcements on new video and gaming content at the Summit as Snap builds out content availability for its highly engaged audience,” Post wrote.
“Games offer a meaningful opportunity for Snap to increase engagement, given its younger audience and mobile first platform,” Post went on, adding that the company could generate fees similar to its peers of 20%-30% of in-game revenues. The new price target reflects Snap’s faster revenue growth and bigger monetization opportunity, according to Post.
Snap unveiled its first original game, Bitmoji Party, last year. It was a welcome announcement on Wall Street, given that games are overwhelmingly the top-grossing form of mobile app.
Wall Street analysts have a Moderate Buy rating consensus on SNAP, with 20 Buys, 8 Holds, and 1 Sell, and a 12-month price target of $17.95. Given SNAP’s recent rise, that actually implies 8% downside from its current level of $19.95 per share. (See SNAP stock analysis on TipRanks.)
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