- Hollis Johnson
Snap is bouncing back, trading up 2.24% at $15.04 a share.
After dropping below $15 for the first time on Tuesday, shares are climbing higher on Wednesday following the announcement of a news program and new app features.
Snap is partnering with NBC News to produce a twice-a-day newscast for the platform, Business Insider’s Alex Heath reports. The program, called “Stay Tunred” begins airing on Wednesday and is Snap’s latest move to bring original content to its platform. The program is aimed at covering the top news stories each day in an un-traditional way for Snap’s younger audience.
NBC will sell ads on the show and share a portion of its revenue with Snap.
The company also recently announced two new features for its app. Tint Brush and multi-snap recording were added the platform recently. Tint Brush allows users to select an area of their photos to change color, while multi-snap recording effectively lengthens the duration of a single snap by stitching several snaps together.
Snap fell below $15 a share earlier on Tuesday. Investors are worried about an upcoming lockup period expiration that will allow company insiders to begin selling their shares at the end of July. They’re also worried about the company’s user growth, as rivals Instagram and Facebook are prone to copying Snap’s new app features.
Investors have reacted positively to new features, especially ones that could open new revenue channels for the company. Snap Maps was released earlier this month, which would allow advertisers to buy location-based advertising. The stock rose slightly after the news.
Snap is down 11.5% since its initial public offering at $17 in March.
- Markets Insider