Snap stock experienced a 7.5% increase following reports of a new deal that enables users to directly purchase Amazon products on Snapchat. This development follows a similar agreement between Amazon and Meta, the parent company of Facebook.
Under the new deal, Snap users can make direct purchases of Amazon products advertised on Snapchat through the app. The arrangement offers real-time pricing, Prime eligibility, delivery estimates, and product details for select Amazon product ads within Snapchat.
An Amazon spokesperson highlighted the significance of this collaboration, stating, “For the first time, customers will be able to shop Amazon’s Snapchat ads and check out with Amazon without leaving the social media app. In-app shopping with Amazon is available for select products advertised on Snapchat and sold by Amazon or by independent sellers in Amazon’s store.” The positive market response is evident in the increase in Snap’s stock value.
Snap could not be reached for immediate comment following reports of the deal allowing users to purchase Amazon products directly on Snapchat. However, this initiative mirrors a similar arrangement between Amazon and Snap’s larger competitor, Meta. Users on Meta’s Instagram and Facebook platforms can also shop on Amazon directly through the respective apps after linking their accounts. Amazon has established advertising partnerships with other platforms like Pinterest.
These collaborations by Amazon are notable as TikTok is aggressively investing in building a U.S. e-commerce business, leveraging its social media network. Snap stock experienced
Amazon’s stock saw a 2.3% increase, closing at $145.80 on Tuesday. Meanwhile, Snap is recovering from its first quarter this year with year-over-year sales growth, reporting a 5% revenue increase for the third quarter. This positive trend is attributed to Snap’s efforts to diversify revenue sources and build a more resilient business, according to Chief Executive Evan Spiegel.
As of the latest available data, Snap shares had risen by 23% since the earnings report, before accounting for the impact of the reported Amazon deal. However, Snap’s Composite Rating is relatively weak at 67 out of 99, and its EPS Rating stands at 15 out of 99, indicating modest earnings growth.