NEW YORK, NY / ACCESSWIRE / March 17, 2017 / Social media giant Facebook and up and comer Snap are two stocks that are likely to go in opposite directions if corporate marketers have anything to say about it. The current perception is that marketers prefer Instagram over Snap. Instagram is owned by – Facebook. Though this should not come as a surprise, the marketing reality has to be a major consideration for investors of Snap, who will likely have to rethink their positions.
RDI Initiates Coverage:
Facebook Inc. https://ub.rdinvesting.com/news/?ticker=FB
Facebook closed up 27 cents on Thursday, at $139.99 per share. For people outside of the investment world, the price of Facebook stock seems to be where it should be. But for the investing community, the company has seen a steady increase in price over the last 5 years. With nearly $405 billion in market capitalization, there is a surging sentiment that the stock may be over bought, as the stock has increased more than $100 per share since its initial offering, and added many investors along the way. Investor opinion varies, but supporters of the "buy" and "hold" positions maintain the company's fundamentals are sound, and there is still plenty of room for upward movement. One very good piece of news for investors who got in on the initial offering is that it will take more than "a lot" to not realize a profit on Facebook stock as the company is reporting handsome growth in revenue year over year. During 2016, Facebook has generated $27.6 billion in revenue, 54 percent higher than the last year revenue and increased operating margin by 10 percent to 45 percent, while its earnings have more than doubled to $3.49 a share for the year from $1.29 a share reported in last year. For most investors, they can be patient and just ask the question, how much profit will I reel in.
Access RDI's Facebook Research Report at: https://ub.rdinvesting.com/news/?ticker=FB
Snap started the day at $20.65 a share but fell 88 cents to close at $19.89. The stock was at $27.09 per share at the beginning of March but has since taken a slide to its current price. Today's loss of more than 4 percent has left investors wondering if it can sustain the early interest of social media marketers and visitors. A recent study conducted with 1600 marketers by RBC Capital Markets and Ad Age arrived at the simple conclusion that marketers prefer Instagram to Snapchat. Inflicting an even deeper wound was that Snapchat was second to last in marketer preference, ahead of only AOL. However, social media is a huge market and there does not seem to be an end in sight to its use and growth. The question is whether Snap can find the right niche to fill and move forward to gain the confidence of their investors.
Access RDI's Snap Research Report at: https://ub.rdinvesting.com/news/?ticker=SNAP
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