Arena (AREN) ZACKS·2024-07-19 15:25Core Viewpoint - Snap Inc. is launching Snap Sports Network, a virtual arena for Snapchat users to engage in competitive games, targeting its large audience of sports viewers [1][2]. Group 1: Snap Sports Network Launch - Snap Sports Network will feature games like hobby horsing and professional pillow fighting, introduced by popular creators [1]. - The network will consist of six episodes airing from July 19 to August 9, with special AR Lenses available for users [1]. Group 2: User Engagement and DAU Growth - Snapchat's DAU reached 422 million at the end of Q1 2024, reflecting a 10.2% year-over-year increase, with an addition of 39 million DAU [3]. - The Zacks Consensus Estimate projects global DAU for 2024 at 443.31 million, indicating a year-over-year growth of 7.04% [3]. - New features aimed at personalization include customizable Snap Map houses and quick snap options with varying durations [3]. Group 3: Safety Features and Competition - Snapchat has introduced new safety features, including in-app warnings and enhanced friending protections, to safeguard users from online harms [4]. - The company faces significant competition from Meta Platforms, Alphabet's YouTube, and Apple, which may impact its market position [4]. Group 4: Stock Performance and Financial Outlook - SNAP shares have decreased by 13.9% year-to-date, underperforming compared to the Zacks Computer and Technology sector's growth of 21.5% [5]. - The Zacks Consensus Estimate for SNAP's Q2 2024 earnings per share is 2 cents, with the 2024 earnings estimate at 24 cents per share, reflecting a slight increase [7]. Group 5: Advertising Revenue Strategy - Snap's transition to automated programmatic auctions for Snap Ads is expected to enhance advertising revenues and drive ad impressions [6].