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Snap Inc. (SNAP) Just Made Monetization Harder, But The Rewards Are Bigger Than Ever

Snap has come out with a singular monetization program to pay creators for both Stories and Spotlight. This means that the company is going to shift from the previous splitting of its formats, showing the company is committed to helping creators while generating revenue. Interestingly, qualified creators can start receiving ad revenue from longer Spotlight videos and Stories as early as February 2025.

Snap Inc. is a Santa Monica, California company that is famous for its flagship product Snapchat. This visual messaging app enables users to share photos and videos that are deleted after they are viewed. The majority of revenues that the company receives are through advertisements such as Snap Ads and AR ads targeted toward brands looking to attract the younger generation.

This new spin-off announcement has come at a time when the Spotlight viewership has seen its YoY consumption increase by 25%. This clearly shows how the platform is becoming popular. The eligibility requirements are stiffer as at least 50,000 subscribers and a high level of engagement are needed to qualify. These demands are the highest ever that have been imposed, but the rewards for content developers are also quite attractive now.

This move is in line with the current trends in the rest of the industry as other platforms such as TikTok and YouTube are also looking forward to increasing opportunities for creators to generate revenues. As TikTok allows longer videos and YouTube extends its ad revenue sharing for Shorts, Snapchat doesn’t want to be left behind. It is a step toward a more holistic way of attracting the best talents since the Spotlight Rewards Program will be phased out by next January.

We are positive about the unified monetization strategy of Snapchat. It will streamline its programs and follow the direction of Spotlight. The app appears to be well set up to engage in this creator market. While some enthusiasts might be forced out, this step represents content quality, thus promising growth both for Snapchat and its ecosystem.

Snapchat is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held SNAP at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of SNAP as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SNAP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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