Why Snap's 'weak points' continue to be in brand advertising
Snap (SNAP) reported better-than-expected fourth quarter results, with a 14% increase in revenue from a year earlier. Despite overall strong results, Snap shares fell 6% on Wednesday due to mixed guidance and concerns about brand advertising weakness. Emarketer VP and principal analyst Jasmine Enberg joins "Catalysts" to discuss the results. "[Snap] now has four consecutive quarters of double-digit growth within its ad business," Enberg says. "That has to do with the efforts that it made to revamp its advertising platform as well as diversify its revenue streams through subscriptions like Snapchat Plus." Additionally, Enberg says that user engagement is improving, especially with changes to Snapchat's user experience. However, Enberg notes, "One of Snap's weak points continues to be in brand advertising." To watch more expert insights and analysis on the latest market action, check out more "Catalysts" here. This post was written by Josh Lynch