After a slow downwards spiral since going public, Snap investor can finally rejoice with some great news. World’s biggest ad buyer, WPP CEO Martin Sorrell told CNBC that WPP plans to double their ad spending this year on Spanchat ads.
This is great news for Snap investors. Sorrell said that WPP will spend about $200 million worth of ads with Snapchat. While this isn’t compared to what they spend with Google or Facebook, but it is a good sign that there is a lot of interest in ad spending with Snapchat.
Due to this great news, Snap stock went up by about 4.5% on the day.
So far this year, Snap has not been able to catch a break. It launched a successful IPO in early March, but has been struggling to perform, thus stock prices are now at an all-time low. Increased competition from Facebook and Instagram doesn’t help the situation either.
Perhaps now is a good time to start investing in Snap stock? Snap’s Q2 earnings report is due to be released next week.