Snap Inc (NYSE:SNAP) is investing in artificial intelligence and machine learning to enhance Snapchat, CEO Evan Spiegel said, aiming to make the app more engaging.
Recognizing the need to catch up in machine learning, Spiegel has organized senior machine learning experts to strategize on achieving state-of-the-art advancements.
This shift follows years dedicated to revamping Snapchat's advertising business, a transformation now beginning to show positive results, Bloomberg reports.
Under Spiegel's leadership, Snapchat has changed significantly and has adapted to evolving social media usage and advertising demands.
These efforts included focusing on personalized content like artificial reality filters and more targeted software enhancements.
Spiegel managed a significant overhaul of the advertising business as part of these developments, which improved Snapchat's revenue streams.
Moreover, Snap is broadening its focus to include building machine learning, AI, and augmented reality features relevant to the advertising sector and user engagement.
Spiegel remains optimistic about Snap's direction and its ability to innovate in augmented reality and other areas. His leadership continues to drive Snap toward integrating more advanced technology to enhance user interaction and ad performance, setting the stage for what he believes will be the most impactful period of growth yet.
In April, Snap reported quarterly sales of $1.195 billion, up by 21% year-on-year, which beat the analyst consensus estimate of $1.12 billion. Snap reported quarterly earnings of $0.03, above the analyst consensus estimate loss of $0.05.
In February, Snap shared plans to reduce its global headcount by approximately 10% of its international full-time employees.
Analysts had flagged Snap's potential for long-term growth courtesy of its privacy-focused messaging platform and augmented reality (AR) leadership.
Snap stock gained 66% in the last 12 months. Investors can gain exposure to the stock via Global X Social Media ETF (NASDAQ:SOCL) and Advisor Managed Portfolios Trenchless Fund ETF (NYSE:RVER).
Price Actions: SNAP shares traded higher by 1.15% at $16.24 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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