Background of Snap, Inc
Snap Inc. is an American camera and social media company which oversees a portfolio of three high-value products: Snapchat, Spectacles and Bitmoji.
The company has a history dating back to 2011, when it was founded as Snapchat Inc by Evan Spiegel and Bobby Murphy. Today the company is based in Santa Monica, California.
The company grew quickly after its inception, and soon received overtures for its acquisition from a number of companies, including Mark Zuckerberg of Facebook in 2014, which it turned down.
In the same year the company grew its asset portfolio with the acquisition of the software company AddLive. This was followed by the acquisition of Vergence Labs for $15 million in cash and stock, who were the developers of Epiphany Eyewear, and mobile app Scan for $50 million.
In September 2016, the company officially named itself Snap Inc., and unveiled smartglasses known as Spectacles.
In November of that year, the company filed documents for an initial public offering (IPO) with an estimated market value of $25–35 billion.
In December 2016, the company broadened its global footprint when it opened research and development in Shenzhen and acquired advertising and technology company Flite and Israel-based augmented reality start-up Cimagine Media for $30–40 million.
A partnership issued in December 2016 with Turner Broadcasting System allowed for integration of Turner properties on Snapchat, while cooperating with Snap Inc. to develop original content.
In early March 2017, the company officially went public under the trading symbol SNAP, and raised almost $30 billion in market capitalization on the first day of trading.
As an institution which defines itself primarily as a camera company, Snap Inc.’s flagship product is most notably the Snapchat application.
Snapchat opens directly to the Camera, making it easy to create a Snap and send it to friends. The company offers a wide variety of creative tools to make it easy for users to personalize and add context to their Snaps. Additionally, the company also offers contextually relevant content and creative tools based on things like time, location, and objects.
Snaps are deleted by default, and by this reduction of the friction typically associated with creating and sharing content, Snapchat has become one of the most-used cameras in the world.
Snap, Inc Shares Growth Driver
Snap Inc. derives its revenue primarily from advertising, which is divided into advertising products, campaign management and delivery, and the measurement of advertising effectiveness.
The company’s advertising products are built on the same foundation that makes its consumer products successful. For example, Sponsored Lenses take advantage of the reach and scale of the company’s augmented reality platform to create visually engaging 3D experiences. Snap Ads let advertisers tell their stories the same way its users do, using full screen videos with sound.
The company’s campaign management and delivery helps advertisers increase their return on investment by providing more refined targeting, the ability to test and learn with different creatives or campaign attributes in real time, and the dynamics of the company’s self-serve pricing.
The company also provides a broad range of third-party and first-party solutions to provide analytics on campaign attributes like reach, frequency, demographics, and viewability.
As such, the company’s innovative and competitive portfolio has allowed it to defy the market trends surrounding the coronavirus pandemic, with shares skyrocketing after a strong first quarter performance in 2025.
The company showed growing ad revenue amid a broader ad slowdown, which is largely attributable to the types of advertisers that spend on the platform, unlike other online companies that rely on ad revenue.
The company appears to rely more on deep-pocketed, larger advertisers instead of a collection of millions of small businesses that advertise on other social networks, while also relying less on the sectors such as travel whose ad spend is hard-hit.
As those types of companies pull back on advertising to weather the coronavirus pandemic, Snap Inc has maintained the advantage and can keep growing thanks to its cohort of advertisers that are in a better position to keep spending.
Snap, Inc Investor Tip
Snap Inc trades on the New York Stock Exchange (NYSE) where investors can buy shares under the stock symbol –SNAP.
Data from the company’s 2025 first quarter financial analysis shows operating cash flow improved by $ 6 million to $ 72 million in Q1 2025, compared to the prior year.
Revenue increased 44% to $ 462 million in Q1 2025, compared to the prior year.
Common shares outstanding plus shares underlying stock-based awards totalled 1 589 million at March 31, 2025, compared to 1 544 million one year ago.
Adjusted EBITDA improved $ 42 million to $ (81) million in Q1 2025, compared to the prior year.
Daily Active User growth accelerated to 20% year-over-year and the company saw increased engagement across key metrics, with DAUs at 229 million in Q1 2025, an increase of 39 million or 20% year-over-year.
As people turn to videoconferencing and live-streaming to connect with friends and family, the company has seen more than a 30x increase in the daily downloads of Snap Camera, a desktop app which allows people to add the company’s entire suite of Lenses to whichever video service they use.
On average, Lenses made by Snap Inc.’s community via Lens Studio now make up over 30% of the total Snaps sent every day with a Lens, with top-performing Community Lenses reaching billions of views on Snapchat.
The company also strengthened its ad platform to drive improved outcomes for advertisers, doubling the amount of money committed via upfronts from advertisers in 2025 vs. 2019. As such, direct response advertising has nearly doubled as a share of the company’s revenue over the past two years, and represents more than half of its total revenue.
Snap Inc. has managed to outbid many of its competitors in 2025 as one of the few social media companies which has seen growth in ad revenue. This can largely be attributed to the company’s innovative advertisement portfolio which has allowed it to secure prime industry players who are able to invest with the company despite the recent economic contraction as a result of the global coronavirus pandemic.
All in all, Snap Inc. shows no signs of slowing down, and its strong performance is set to deliver solid dividends and a strong share price for investors who choose to purchase shares today, securing a strong buy-in in 2025 and in the future.
Snap, Inc Major Shareholders
Evan Spiegel, Bobby Murphy, Lightspeed Venture Partners, Benchmark
Sector
Communications
Industry
Media
Sub Industry
Internet media
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FAQ
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Yes, you can.
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By clicking on the link provided above, you can view the real-time Snap, Inc share price on the platform.
- Is Snap, Inc a good share to buy?
Yes, Snap Inc shares have proven to be an excellent choice, which have remained impressively resilient to the unforeseen economic developments of 2025.
The company reported remarkable growth in the first quarter of 2025, with ad revenue increasing where many other social media companies have reported losses.
This is largely due to the company’s innovative ad offering which has secured it a strong and lucrative client base, driving growth for investors going forward.
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Yes, you can.
- Can I buy Snap, Inc shares in South Africa?