Snapchat Launches 'Limitless Snaps', New Magic Eraser, Drawing With Emojis, More

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Snapchat is doing away with its famous 10-second time limit on certain snaps. Through curation, Snap has also been able to avoid the fake news crisis that has plagued other platforms.

To such investors, Snap may be worth only its current market capitalisation of $US27 billion if they're sure the company will reach 500 million users in the 2020s and eventually, like Facebook, more than 1 billion. It's not incorporating Adobe (ADBE), so how will it work? One Snapchat user posted a photo to Twitter in which the eraser tool was used to remove the Empire State Building from the Manhattan skyline.

There's other features, too. If you film clips of the concert on your phone's camera and upload them to your Snapchat Story later, your videos would have a white border around them and a small header reading, "from Camera Roll".

Limitless Snaps - This one is easy. Interestingly, it appears that the company's user base may also be wary of the shares. Less edited, less staged, more I just whipped out my phone and now I'm sending you an eight-second selfie of my face with seven chins.

Snapping is also introducing looping videos - that is the video version of a limitless snap. The additions come right as competition with Instagram and the app's "stories" feature is heating up.

The big question of course is whether Snapchat's new features will keep users engaged.

IBD'S TAKE: As is often seen with high-profile IPO's, Snap stock soared on its first two days of trading then pulled back sharply. The fund will likely look to make investments as well as some acquisitions.

The original appeal of Snapchat was based on the fact that picture messages sent via the app were only available for a short space of time before disappearing into the ether. The biggest stock market winners typically make their major price moves within a few months or years of their initial public offerings. Snapchat was posting strong growth and Instagram needed to do something as it was losing ground and engagement to Snapchat.

Mahaney is expecting the company added 7 million daily average users in the March quarter, and anything above 8 million would be a positive for the company, while anything below 6 million would be negative. As we have repeatedly noted in our earlier Snap stock coverage, Snapchat's daily active user growth has been falling off the cliff.

He estimated that Snap on Wednesday would announce 169 million users, up 39 per cent from last year's first quarter.

Of course, it's not just a one or two quarter issue. Snap is obligated to rely on their innovative side in order to continue presenting new and attractive features to its users so that new people keep coming to the platform while the old ones remain attached with the platform.