Snap Inc. (SNAP) on Monday launched a new feature called “Spotlight,” to better compete with rival services including TikTok and Instagram Reels. SNAP shares rose more than 4 percent this morning following the news.
Spotlight will enable users to share their short video clips publicly in the Snapchat app. Previously, they had to share snaps with friends and family, but now they can share them directly to Spotlight and get more followers, according to the company.
The Santa Monica, California-based company also plans to distribute nearly $1 million on daily basis to users whose snaps will gather the most views and likes on the newly released Spotlight. The reward will be given on daily basis till the end of this year and is aimed to boost user engagement related to the latest feature.
The new feature brings money generating opportunity for Snapchat users, who can produce and share engaging content on the platform. It will also empower them to express themselves and boost their reach to a bigger audience with the latest feature.
Snap is initially launching Spotlight in 11 countries including the United States and Canada, with a plan to add more in the coming time.
In a similar move, the social network giant Facebook rolled out Instagram Reels earlier this year to compete with TikTok. Reels allow users to create short videos with available special effects and music.
Snap shares hit a new 52-week high of $47.27 on Monday following the announcement. The stock has done exceptionally well this year. If we look at the performance of SNAP in recent months, the stock has skyrocketed more than 180 percent on a year-to-date basis, about +160 percent during the past 6 months, and nearly 112 percent over the last 3 months.
Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.