"In 2021, Apple tweaked its privacy rules to make it harder for app developers to track their users across the internet. This created a massive problem for social media platforms, because without access to users' browsing data, they could no longer target them accurately for advertising purposes. Millions of people in developed markets like the U.S. use Apple's iPhone to access social media, so this was a gigantic sea change."
"Snapchat parent company Snap (NYSE: SNAP), on the other hand, is still lagging behind, but some of its new tools have successfully boosted conversions for advertisers recently, so its fortunes could be set to turn for the better. Snap stock remains 91% below its 2021 record high, and it's trading at a rock-bottom valuation."
Apple's 2021 privacy changes made it harder for app developers to track users across the internet, reducing access to browsing data used for ad targeting. Meta Platforms adapted by developing alternative targeting solutions. Snap initially lagged but introduced new advertising tools that have recently improved advertiser conversion rates. Snapchat's user base continues to grow, and Snap's stock trades near historical lows, roughly 91% below its 2021 peak. Improved ad performance combined with low valuation could present an attractive investment opportunity heading into 2026. Businesses choose advertising channels based on return on investment, making conversion gains critical to Snap's revenue prospects.
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