Snap racks up more than 20% in a week amid efforts to find new uses for Snapchat

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Shares of Snap Inc. have risen more than 20% in the last week as the company tries to take Snapchat beyond messaging. Shares of Snap SNAP, + 5.89%, gained 5.9% in trading on Wednesday after a report from The Information detailed the company’s plans for new e-commerce links on the Snapchat app. The stock is now up 21% over the past five trading sessions as the company continues its efforts in recent months to find new uses for its popular mobile app.

Snap reportedly acquired the startup behind Screenshop, an app that allows people to identify and purchase items they see in photos, in a deal last year, according to a report Wednesday. Screenshop’s technology could help Snap with its plans to deliver purchase recommendations to users based on their saved photos, an initiative the company intends to discuss at its May developer conference, according to the report. A Snap spokesperson declined to comment on the company’s e-commerce ambitions or whether it had purchased Screenshop. Snap has been looking to differentiate its app and also push users toward features beyond messaging, a Snapchat staple but a feature that has somewhat limited revenue potential. The company has been seeking acquisitions as it expands its capabilities, acquiring Fit Analytics earlier this year, giving Snap access to technology that helps people determine the correct size of clothing when shopping online. Snap also bought Ariel AI, which offered augmented reality tools designed to help enable “experiential retail,” among other capabilities. “We are investing in creating new experiences for specific verticals where we believe AR can clearly increase the customer journey and deliver value to businesses,” said Snap Senior Product Manager Peter Sellis at the presentation of the company investor day in February. The company planned to start with purchases. See more: Snap’s big revenue ambitions draw applause E-commerce is an increasingly popular avenue for social media companies like Facebook Inc. FB, + 2.23% and Pinterest Inc. PINS, + 0.61% Snap’s plans As detailed in The Information report, they suggest the company would seek to integrate online shopping into an existing Snapchat feature: the Memories tool that people use to store photos and videos. Snap won praise Tuesday for its other efforts to push users toward more revenue-generating features, as Atlantic Equities analyst James Cordwell raised the stock to overweight from neutral. He pointed to the push for Snap’s original shows and its Spotlight section, which features user-generated viral content similar to what can be seen on TikTok or Instagram’s Reels. The traction for these newer areas of Snapchat, combined with Snap’s portfolio of ad products, could help the company generate average revenue per user closer to what Facebook and Twitter Inc.TWTR see, + 2.97%, according to Cordwell . Shares of Snap have gained 400% in the last 12 months, as the S&P 500 SPX, + 0.15% has risen 53%.