Yahoo Finance SNAP Integrates Ability to Fully Generate Images in AI Chatbot
Snap Inc. SNAP owned Snapchat has announced that it is expanding its artificial intelligence (AI) chatbot with the ability to create images. The chatbot will now be able to respond to users' messages with AI-generated images.
This update was announced at Snap’s annual Partner Summit. The company’s main focus is to use technology to boost its development of augmented reality (AR) features or create overlays on top of videos and images of the real world.
Generative AI has been popular in the tech industry in the past few months. Snapchat created its chatbot My AI which can help users with almost everything from searching for information to writing poems. It was created by using OpenAI’s Chat GPT technology.
My AI was primarily launched for only Snapchat+ subscribers, paying $3.99 per month. It is now available at no cost for all Snapchat users.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
SNAP’s Augmented Reality Efforts to Boost Top Line
Snapchat recently launched AR Enterprise Services (ARES), a division that will help firms build augmented reality functions for their applications or websites. With more than 250 million people engaging with AR every day on Snapchat, it is seen as an opportunity to commercialize it.
This Zacks Rank #3 (Hold) company is considering ARES services to diversify its top line, which is dominated by digital advertising.
Shares of SNAP have fallen 64.3% in the past year compared with the Zacks Computer and Technology sector’s decline of 7.7% in the same period.
According to a Grand View Research report, the augmented reality market was estimated at $25.33 billion and it is expected to grow at a CAGR of 40.9% from 2022 to 2030. This AR market has attracted tech giants like Tencent TCEHY and Alphabet GOOGL.
Tencent acquired Turtle Rock Studios in December 2021. Turtle Rock Studios is known for its wide range of gaming library and augmented reality functions. Tencent has officially formed an extended reality team for making advancements in the metaverse concepts.
Google invested $14.5 million in Blue Vision Labs. Blue Vision Labs is an augmented reality-based startup. This will give a new dimension to a wide array of augmented reality solutions that is already present with Google.
WPP WPP entered into a partnership with Snapchat to focus on AR technology and develop immersive experiences for users. Snapchat has Lens Studio from where anyone can make AR experiences for free. But with growing users and popularity for AR experiences, snapchat launched The mirrors. It is an enterprise division that commercializes AR and is expected to boost the top line.
The Zacks Consensus Estimate for SNAP’s 2023 earnings is pegged at a profit of 18 cents per share, indicating year-over-year growth of 5.88%. The Zacks Consensus Estimate for revenues in the first quarter of 2023 is pegged at $1.01 billion, indicating a year-over-year decline of 5.42%.
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