Snap, Inc. SNAP, the parent of social media platform Snapchat, tumbled over 7% on Thursday, posting the second-worst session in 2023, despite the company unveiling new partnerships this week as well as the release of new AI features in the platform.
Wednesday, the company announced that it is adding the ability to create images through its artificial intelligence chatbot, called "My AI." The chatbot can now respond to user communications with AI-generated images. My AI was developed using Open AI's ChatGPT technology.
The chatbot was initially made available to users who pay $3.99 per month for Snapchat's premium subscription Snapchat+, which now has more than 3 million subscribers. However, the company revealed that My AI will be available to all its 750 million monthly active users.
Snap Adds New Features To Its Platform
Snap also launched a new initiative called "Creator Marketplace" that would connect companies with Snap creators for sponsored content opportunities.
The company also unveiled Ares, a new augmented reality shopping suite that will allow businesses to design and distribute AR versions of their products.
Analyst Comments: "We are encouraged with these product initiatives," Citigroup analyst Ronald Josey said in a note. Snap's camera AR features have long been considered best in class, and with ARES (AR Enterprise Services) and agreements with the NFL and Microsoft Flip, among others, Snap is now spreading its unique AR technologies beyond its main app, the analyst added.
Coming Soon: Snap's Q1 Earnings Report
Snap, Inc. will report its Q1 financial results on Thursday, April 27, after the closing bell.
The consensus among Wall Street analysts anticipates a loss of $0.226 per share for the quarter. Revenues are expected to be $1.008 billion. Snap fell short of EPS projections in three of the previous four quarters.
Snap closed at $10.14 per share on Thursday, that's 43 times its projected twelve months' earnings, according to Benzinga pro data.
Snap shares are down 81% from their all-time high of $83 set in September 2021.
The average analyst price target for Snap is $10.74, only 6% higher than the stock's current price.
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