2023-11-14 11:10:25 ET
Shares of Snap Inc (NYSE: SNAP) gained about 10% today after Amazon.com Inc (NASDAQ: AMZN) confirmed that it has partnered with the social media giant.
Amazon to collaborate with Snapchat
The eCommerce behemoth will now enable Snapchat users in the U.S. to buy certain items without having to leave the social media app. According to Amazon:
Customers in the U.S. will see real-time pricing, prime eligibility, delivery estimates, and product details on select Amazon product ads in Snapchat as part of the new experience.
Note that AMZN already has similar agreements with the likes of Pinterest and Meta Platforms as well. The deal it announced today will likely help Snap Inc accelerate recovery in its ads business.
Snap stock has gained a whopping 45% in less than two months.
Social shopping has been on the rise
The said collaboration is equally exciting for Amazon as well considering Snapchat now has a user base that sits north of 400 million in total as Invezz reported here .
Watch here: https://www.youtube.com/embed/gFg7Z-gRDHo?feature=oembedIt is worth mentioning here that as much as 43% of the users browse through social media apps in search of goods and services, as per Tracking the Digital Payments Takeover: Monetising Social Media .
Snap, however, seems to be taking a different direction to capitalise on the rising trend of social shopping than TikTok that’s committed to introducing its own online store.
In September, the yellow camera app decided to pull the plug on its augment reality for enterprise services or ARES business. Wall Street currently has a consensus “hold” rating on Snap stock.
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