SNAP’s Advertising and Revenue Challenges Analysis

The discussion revolves around the challenges and progress in SNAP's advertising-based business. Despite efforts to overhaul its ad business, positive indicators include an increase in active advertisers and substantial revenue from Snapchat Plus. However, direct response advertising needs significant improvement to attract more advertisers and budget commitments. The company's stock has plummeted almost 25%, the largest drop since February, prompting analysts to cut their price targets. SNAP's comparison with larger competitors like Meta highlights its smaller scale but significant user base of 850 million monthly active users. The need for SNAP to intensify focus on its ad business to bridge the gap with competitors and sustain growth is evident.