Snap breaks into ‘startup squads' as ad revenue stalls

Core Insights - Snap is restructuring into small "startup squads" of 10 to 15 people to enhance competitiveness against larger rivals [1] - The company is facing challenges with advertising revenue growth stagnating at 4% in Q2 and a 2% decline in North American daily active users to 98 million [1] Revenue and Growth Opportunities - Snapchat+ subscriptions are generating over $700 million in annual recurring revenue from more than 15 million paying subscribers, marking it as one of Snap's fastest-growing revenue streams [2] - Snap is investing in AR glasses, referred to as Specs, which are envisioned to replace smartphones, indicating a significant shift towards human-centered computing [2] Market Valuation and Stock Performance - The current stock price reflects skepticism, but there is potential for "startup-style return" at Snap's valuation of approximately $12 billion, which is a 90% decrease from its peak market cap of $116 billion in September 2021 [2]