Facebook (FB), Snapchat (SNAP), And GoPro (GPRO) Report Surging Traffic During Lockdown

We are social animals. But what exactly does that mean when we can’t dine with friends at restaurants, share stories at the water cooler, or attend birthday parties, weddings, and family reunions?

It means we find other ways to share our stories, thoughts, and opinions. Fortunately, we live in a time where even if we’re required to be socially distant, we have the technology to stay connected by digital means. And that is exactly what we’re doing.

Depending on which source you’re looking at, internet traffic has surged anywhere from 25% to over 100% during social distancing. Gaming has seen a huge spike. And, Facebook (FB) saw average traffic jump 27% in the first few weeks after the virus came to the U.S.

Digital platforms, like FB, that emphasize pictures and video, as opposed to the written word, have experienced the biggest increases, as we want to “see” what our friends and family are up to. Some of my friends are now on FB doing regular video calls with loved ones they can’t visit, such as those in retirement homes. This is something that, even a few months ago, just didn’t happen.

The sharing trend has been growing for years, but I believe the boost it received recently will stick with us for years to come. And, certain companies will see outsized benefits from this trend as it accelerates.

The Snapchat (SNAP) website describes itself as “a camera company,” and, fits squarely within the trend of sharing via video and pictures. 

SNAP grew revenue in its latest quarter, which closed before COVID-19, at 44% year-over-year increase to $561 million. The number of average daily users rose by 17% to over 218 million. 

As SNAP grows, it is looking to monetize users, and the company showed promising signs of this in the latest quarter. Snapchat announced its revenue from commercials tripled year-over-year, and that it signed its first two commercial users of its “Scan camera technology”, Mcdonalds (MCD) and Coca-Cola (KO).

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