Strength Seen in Snap (SNAP): Can Its 12.0% Jump Turn into More Strength?
Snap (SNAP) shares ended the last trading session 12% higher at $9.72. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.2% loss over the past four weeks.
The upswing in share price came following reports of an internal CEO memo indicating that the social messaging company could post better-than-expected results for 2024. Evan Spiegel, the company’s co-founder and CEO, addressed employees in a memo sent in September that it could log more than 475 million daily active users in 2024. The memo also stated that its full-year advertising revenue growth could be more than 20% for 2024. The memo also set a goal of 2023 adjusted EBITDA of $500 million.
This company behind Snapchat is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -150%. Revenues are expected to be $1.11 billion, down 1.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Snap, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SNAP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Snap is part of the Zacks Internet - Software industry. Freshworks Inc. (FRSH), another stock in the same industry, closed the last trading session 4.7% higher at $18.58. FRSH has returned -11.3% in the past month.
For Freshworks Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. This represents a change of +600% from what the company reported a year ago. Freshworks Inc. currently has a Zacks Rank of #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Snap Inc. (SNAP) : Free Stock Analysis Report
Freshworks Inc. (FRSH) : Free Stock Analysis Report
