Snap May Be Running On Ad Fumes

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With the pull of better ad targeting (read: revenue growth) at its big brother Meta Platforms META 0.00%↑, Snap SNAP 0.00%↑ may be experiencing a more significant headwind than I expected. And while I expected Snap to have a delayed response to the ad market rebound, it should have seen a material shift by now. Instead, Snap's revenue growth has remained negative and has flatlined in the low negative single-digits.

In my most recent thesis evolution, I was fairly confident Snap had a plan to move forward and break away from its reliance on advertising. Snap has remained in the back of the field in terms of advertising market share and would be the first to see its ad dollars pulled and the last to see them return. Much of my bullish thesis rested on Snapchat+ and its ability to not only differentiate revenue from advertising but provide consistency and predictability, shifting itself from its market-trailing ad business.