Early Signs That Snap Isn't Just For Teens
Back in late March, "Downtown" Josh Brown made the case against owning Snap Inc (NYSE: SNAP), noting that the app is uber-popular among the young crowd but underutilized by anyone who isn't a teen or millennial.
Selfies Taken Beyond Highschool
Brown may need to revisit his thesis, based on the results of a new survey by analysts at Jefferies. According to a CNBC report, Jefferies' survey found that Snapchat's engagement is growing within the 25-plus age group. The analysts were "surprised" to find that 41 percent of people aged 25 to 34 use the app more often now than they did last June while the same can also be said for the 34 to 44 age group.
In fact, while usage across every age demographic was observed, the "most improvement" was seen among users 25 years-plus. Interestingly enough, the survey found that Snapchat's growth didn't come at the expense of Facebook Inc (NASDAQ: FB)'s Instagram, which implies the social media landscape isn't a zero-sum gain.
With that said, the analysts believe that Snap's biggest driver of growth could be its ability to leverage its "massively engaged" user base with its growing appeal among the older crowd to grow its advertising options.
"Snap has improved the ability to target with direct response ads as well as increased the number of gamified ads which have much longer brand engagement," the CNBC report quoted the analysts as saying.
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