|Bid||14.02 x 800|
|Ask||14.05 x 800|
|Day's Range||13.96 - 14.65|
|52 Week Range||4.82 - 16.24|
|Beta (3Y Monthly)||1.07|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||12.92|
Yahoo Finance's Brian Sozzi and Alexis Christoforous sit down with Stephen Guilfoyle, president of Sarge986, and Josh Jalinski, president of Jalinski Advisory Group, around Monday's opening bell. The panel discusses yield curve expectations, earnings, investing in tech, and more.
Snap shares have soared this year on expectations that the company is finally turning its business around, and the Snapchat maker will be looking to prove that narrative with its next earnings report.
Snap (NYSE:SNAP) stock will release its earnings report on Tuesday, July 23 after the bell. Since December, SNAP stock has outperformed all but three stocks in the market as companies flocked to their ad platform and user growth returned.Source: Shutterstock Still, SNAP stock has risen to a high valuation and remains volatile. Also, if past quarters serve as an indication, earnings reports tend to inspire extreme moves in the stock. Given that reality, I would stay out of Snap going into earnings. SNAP Earnings ExpectationsWall Street expects Snap to post a loss of 10 cents per share. If SNAP stock meets earnings estimates, that would be an improvement from the same quarter last year, when the company lost 14 cents per share. Wall Street also forecasts revenues of $359.56 million. That number is 37.1% higher than the revenue figure for second quarter 2018 when the company brought in $262.26 million.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Tech Stocks That Are Still Worth Your Time (And Money) Historically, earnings reports have significantly moved the stock in previous quarters. The Q1 report led to a 6% decline in SNAP, and that was a tame reaction for this equity. SNAP earnings have usually inspired extreme reactions in previous releases. The Q4 report sent the equity higher by 22%. It also saw an 11.3% decline following Q3 2018 earnings and a 7.3% after last year's Q2 report. Snap Stock's Dramatic TurnaroundThis time last year, Snapchat looked destined to become the next MySpace. The platform could not grow its user base and could not attract beyond the teen and young adult user base. Moreover, unlike Twitter (NYSE:TWTR), it had a design vulnerable to copycats. It seemed like just about any feature that Snap launched became quickly co-opted by Facebook (NASDAQ:FB).However, the company redesigned its platform. As our own James Brumley pointed out, some users bristled, but advertisers loved the platform. Top and bottom-line growth began to turn around. In the first quarter, the company again saw growth in its user base as the active user count rose to 190 million, four million more than the previous quarter.Still, it could take a stellar earnings report to send SNAP upward. Since bottoming at $4.82 per share in December, Snap stock has nearly tripled in value.This has left SNAP stock with an elevated valuation. Consensus estimates do not forecast a profit in the foreseeable future. Also, at current prices, Snap trades at around 15.5 times sales. Consequently, many have turned either neutral or bearish on the stock. Luke Lango refers to the rally as "likely in the rear-view mirror." James Brumley claims that analysts are "turning bullish at the top."Brumley also mentions that Snapchat stock became the fourth-best performer in 2019. This earnings report could influence whether it stays in the top five. The Bottom Line on SNAP StockConsidering the history of SNAP stock, I would expect an extreme move after earnings. It also looks more likely to fall than rise. The management of Snap, Inc has finally found a way to derive significant revenue growth and a return in interest to the platform. This helps to explain why it has risen from below $5 per share to the $14.50 per share price range in seven months. * 3 Food Stocks to Buy for Fast and Big Profits However, with an elevated sales multiple and profitability still far into the future, SNAP stock looks fully priced at these levels. Given this possibility of a huge swoon, I would not want to own this equity when management announces earnings.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Expect an Extreme Reaction in SNAP Stock Following Earnings appeared first on InvestorPlace.
On Friday morning, Benzinga Pro subscribers received an option alert related to several unusually large Snap option trades. At 9:30 a.m., a trader sold 900 Snap call options at a $16 strike price that expire on Aug. 16. At 10:38 a.m., a trader sold 2,588 Snap put options at a $13 strike price that expire on Aug. 16.
The U.S. stock market again has moved to an all-time high -- and more than a few investors are worried. Finding stocks to buy is exceedingly tough, with growth names in particular at valuations not seen since the heady days of the dot-com bubble. Stocks to sell, however, are a different story.Of course, valuation concerns have dogged U.S. equities for most of what is now a ten-year bull market. For the most part, stocks have simply climbed the proverbial "wall of worry". And those investors who have seen many growth stocks as "too expensive" in many cases have missed out on huge gains.Even by those standards, however, more than a few stocks have made moves in 2019 that are almost crazy. 31 stocks with a market capitalization over $2 billion already have doubled or better just this year. Many more trade at sales multiples equivalent to earnings multiples for quality companies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThese 10 stocks, in particular, have serious valuation questions. All ten admittedly have real businesses (even if not all ten are profitable), and real reasons why investors have been so optimistic. But at these prices, it doesn't take much for these overvalued stocks to stumble. * 10 Tech Stocks That Are Still Worth Your Time (And Money) Long-time high-flyer Netflix (NASDAQ:NFLX) proved that point this week, falling 11% after losing U.S. subscribers. One - or more - of these ten stocks could be next. Beyond Meat (BYND)Source: Shutterstock The gains in Beyond Meat (NASDAQ:BYND) have been beyond incredible. The company originally priced its IPO in a range of $19 to $21. That figure was moved to $25. By the end of its first day of trading, BYND stock had gained 163% to $66.It wasn't done. Aided by a big earnings beat, BYND would triple from that first-day close before pulling back. Its upward march has resumed, however: BYND now is up nearly 600% from its IPO price in two and a half months.There is a real opportunity for the company to disrupt the meat market, as Luke Lango argued last month. But valuation is an enormous question mark. The overvalued stock trades at 25x fiscal 2020 EPS estimates. And the obvious concern is that Beyond Meat doesn't have the 'meatless meat' market to itself.Indeed, competition is intensifying. Tyson Foods (NYSE:TSN), which sold its stake in Beyond Meat before the IPO, is entering the market. Nestle (OTCMKTS:NSRGY) is on the way as well. Privately held Impossible Foods already has a solid position. So does Kellogg (NYSE:K), whose Morningstar Farms business already sells plant-based meat substitutes.The optimism toward Beyond Meat's opportunity makes some sense. The fact that it will have to share the opportunity, however, means that 580% gains and a nearly market-leading price-to-sales multiple both look like too much. Shopify (SHOP)Source: Shutterstock Anyone who has called e-commerce platform Shopify (NYSE:SHOP) overvalued has looked silly. I should know: I've done so twice this year, most recently in April with SHOP stock at $206.Of late, I've largely given up fighting the tape. The company's new plan to add fulfillment to its offering opens its addressable market -- and allows investors to model greater growth for longer, potentially keeping SHOP stock at these levels.That said, fundamentally, I'm far from convinced. SHOP stock still trades at something like 25x sales -- like that of BYND, one of the highest multiples in the market. I still believe, as I wrote last year, that the sensitivity of small businesses to a recession makes SHOP more cyclical than investors realize. * 7 Marijuana Stocks With Critical Levels to Watch The valuation here simply seems to incorporate perfection. Perhaps Shopify can deliver, particularly as it moves into fulfillment and starts serving larger clients. But even the best business can stumble and there is no room for anything close to a stumble left in Shopify stock. Zoom Video Communications (ZM)Source: Shutterstock Along with Beyond Meat, Zoom Video Communications (NASDAQ:ZM) has calmed fears about the tech IPO market that followed the weak debuts of Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT). ZM stock hasn't been quite as explosive as BYND, but it's posted big gains, nearly tripling from its $36 IPO price.The gains aren't a surprise. Indeed, I wrote not long after the IPO that Zoom stock was the perfect stock for this market. Growth was impressive, potential huge, and valuation -- even then -- stretched. As I put it at the time, "The point right now is that the numbers can work. And for now, that's all that really matters."With ZM stock nearing $100 again, however, the question is if the numbers can work. Zoom trades at nearly 50x fiscal 2020 revenue. That's 50x sales -- not earnings. The FY21 consensus earnings per estimate is a nickel per share, suggesting a forward P/E multiple nearing 2,000x.Decades -- not years -- of growth are priced into the videoconferencing software company. And maybe that growth is coming. But even in a tech space that looks overheated, ZM's valuation stands alone. And if there is any concern about valuation -- let alone a sell-off like that seen at the end of last year, when Zoom was still private -- there may not be an overvalued stock more likely to fall than ZM. Square (SQ)Source: Shutterstock It might be a bit unfair to put Square (NYSE:SQ) on this list of stocks likely to crash. It's already pulled back; even after touching an eight-month high this month, SQ stock still sits 20% below all-time highs reached back at the beginning of October.Valuation is steep, but in context not that stretched. SQ stock, backing out its cash, trades at less than 70x 2020 consensus EPS estimates. That's not cheap, to be sure, but relative to other growth stocks in this tech market it seems almost reasonable.That said, there are real concerns here. The company's potential move into banking excites some investors, but at this point in the cycle, should be seen as a risk. Competition remains intense. Like Shopify, Square has significant exposure to small businesses (even though it's been successful of late in grabbing larger customers). * 3 Stocks That Look Like Death The worry more broadly is that Square's business model works great now, in a growing economy where its technology is transformative. At some point, the environment will be very different. If investors start focusing on those out-year risks, SQ stock -- which fell 50% in a matter of months last year -- could be in for another big fall. Aphria (APHA)Source: Shutterstock Marijuana producer Aphria (NYSE:APHA), too, might seem an odd choice for this list of overvalued stocks. Most notably, APHA stock already has crashed -- twice. It fell 75% during last year's fourth quarter, and after a huge rally has dropped 40% since early February.But APHA -- and other marijuana stocks -- still could see much more in the way of downside. Even with lower valuations across the sector, the likes of APHA, Canopy Growth (NYSE:CGC), and Cronos Group (NASDAQ:CRON) still trade at nosebleed revenue valuations. Earnings are negative almost entirely across the board.And beyond Canada, it's still not clear from where the next wave of growth comes. U.S. legalization is stalled out until at least 2021 (and likely much longer). Movements toward medical marijuana worldwide are making progress, but recreational legalization is likely to take some time.Cannabis stocks, including APHA, already are drifting down, as investors lose patience. But valuations remain stretched even at these lower prices, and if growth expectations dim, there's a lot further for APHA and its peers to fall. Salesforce.com (CRM)Source: Shutterstock Salesforce.com (NYSE:CRM) could be the granddaddy of this list. Salesforce has been public for 15 years -- and it's looked like a potentially overvalued stock for that entire period. Yet over that stretch, CRM stock has returned a whopping 3,550% -- a stunning 26% average annual return. Investors who focused on valuation, and not the business, missed out on those market-leading gains.In this market, there's not a ton of reason to suggest that CRM can't keep flying. But of late, it does look like investors are starting to focus just a bit more on valuation -- and competition. Most notably, Microsoft (NASDAQ:MSFT) is trying to take share with its Dynamics 365.Meanwhile, Salesforce.com has continued pumping out 20%+ annual growth -- as it has for years -- but CRM stock has stalled somewhat. Indeed, while other software stocks have soared, CRM has traded sideways since the beginning of February.The problem is that CRM stock, even after half a year of flat returns, still isn't cheap -- or close. The stock trades at 46x next year's earnings, which isn't terrible considering its growth. But as I noted earlier this year, some two-thirds of the company's guidance for adjusted net income comes from the exclusion of stock-based compensation. That's a real cost, that dilutes CRM stockholders. Back that out, and a 20-year-old company is trading at something like 140x forward earnings. * 7 Stocks Top Investors Are Buying Now In this market, investors have been happy to ignore stock-based comp. If and when that changes, CRM stock is going to fall. Etsy (ETSY)Source: Shutterstock Etsy (NASDAQ:ETSY) has a great business. It's dominant in the crafting space, having dispatched potential competition from Amazon.com (NASDAQ:AMZN). The company was able to raise seller fees last year, which gave a big boost to revenue, margins, and the ETSY stock price.But at the end of the day, Etsy remains a mostly niche business. Growth in its industry likely is limited. Like Square and Shopify, Etsy may be benefiting from the 'newness' of the platform. Businesses will fade, whether due to a recession or simply an increasing realization that the returns don't match the investment.Even down 11% from early March highs, none of those risks are priced into ETSY stock. It still trades at well over 10x revenue, even backing out its cash, and over 50x next year's EPS on the same basis. And as I wrote in April, even the company's five-year targets suggest upside is limited.To some extent, given the soft performance of ETSY in recent months, investors may be coming to the same conclusion. But if ETSY's valuation gets reset that of a company with a relatively limited market and a potential ceiling on its growth, the soft drift of the last few months could become an accelerating downturn. Lululemon Athletica (LULU)Source: Shutterstock What Lululemon Athletica (NASDAQ:LULU) has accomplished is rather incredible. At a time when retailers -- and particularly apparel retailers -- are getting hammered, Lululemon continues to drive impressive growth. Thanks in part to a Q1 earnings beat, LULU stock has hit all-time highs and might seem to have further to go.But at 34x forward earnings, even backing out net cash, it's not hard to wonder if the rally has run its course. Lululemon isn't going to be immune from the pressures on retail forever. 'Athleisure' is a hot trend at the moment; like all trends, that won't last forever. One only need to look at Gap (NYSE:GPS), whose Athleta nameplate is a minor Lululemon competitor, to see what happens when 'cool' turns 'uncool'. * 3 Food Stocks to Buy for Fast and Big Profits To be sure, that type of shift may not happen at Lululemon to the same extent: the demand from athletes for its clothes likely will persist. But LULU remains priced for years of growth - and it's not hard to see that growth stalling out when the next hot trend comes along. Snap (SNAP)Source: Shutterstock The turnaround at Snap (NYSE:SNAP) clearly has made some progress. User growth is returning. Snap's ability to monetize those users via advertising sales -- particularly outside the U.S. -- is improving dramatically. Several Wall Street analysts have jumped on board as well.As a result, SNAP stock has been one of the year's biggest gainers, rising 171%. But SNAP also has begun pulling back, dropping 10%+ in the last few sessions - and more downside could be ahead.Most notably, SNAP stock's valuation has returned to the stratosphere. It's still burning cash and posting negative Adjusted EBITDA. SNAP trades at about 8x next year's revenue - a big multiple relative to profitable and entrenched social media plays Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR).Again, Snap Inc deserves some credit -- and SNAP stock deserved some sort of rally. But 170% looks like far too much as investors are starting to realize. Roku (ROKU)Source: Shutterstock Roku (NASDAQ:ROKU) has taken a modest hit after Netflix earnings but still sits just off all-time highs. It's outperformed even SNAP, gaining 257% so far this year -- the best performance of over 700 stocks with a current market capitalization over $10 billion.Here, too, there are some reasons for optimism. Roku obviously is a play on streaming. And with new platforms coming from Disney (NYSE:DIS), AT&T (NYSE:T), and Comcast (NASDAQ:CMCSA), it's not hard to see why investors are excited.But this isn't exactly a risk-free story. Roku gets little in the way of revenue from Netflix or Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) unit YouTube. Its player sales -- about one-third of guided 2019 revenue -- are unprofitable. The current valuation is something like 17x platform revenue at a time when most media and content companies are trading at low- to mid-single-digit multiples. Even NFLX trades at less than half that multiple. * 10 Tech Stocks That Are Still Worth Your Time (And Money) This seems like another case where investors are paying any multiple for growth -- yet perhaps aren't understanding the full story. Roku has growth ahead -- but like so many overvalued stocks on this list, potentially not nearly as much growth as investors are pricing in.As of this writing, Vince Martin is long shares of Gap Inc. He has no positions in any other securities mentioned.The post 10 High-Flying, Overvalued Stocks in Danger of Crashing appeared first on InvestorPlace.
The weeks-long race to succeed Theresa May is coming to a close with a new prime minister set to enter Downing Street amid continued uncertainty over Brexit. Politics will be front and centre next week with a hearing in the US Congress featuring former special counsel Robert Mueller also on the docket. Meanwhile, investors await a rate decision from the European Central Bank and another rush of earnings from technology heavyweights Amazon, Alphabet, Facebook and others.
(Bloomberg Opinion) -- China has birthed some pretty impressive billion-dollar startups. Bytedance Inc.’s TikTok is so hip it makes Snap Inc. look like it’s for your parents. Sensetime Group Ltd. and Beijing Megvii Co. are masters of creepily powerful AI used in facial recognition and surveillance. Even in boring old hardware, Bitmain Technologies Ltd. has a niche in bitcoin; SZ DJI Technology Co. dominates the market for drones; and UBTech Robotics Ltd. makes an IronMan robot. Bitcoin, drones and robots – that’s cool.India’s four largest unicorns, by contrast, are in online payments, e-commerce, ride-hailing and education. No shame in meeting the simplest of human needs. In fact, Indian startups can do well just by focusing on “meat and potatoes” consumer requirements, Sarbvir Singh, managing partner at Waterbridge Ventures, told me recently. As he sees it, the country’s future unicorns will remove friction in areas where people are already spending.Chalo, one of Waterbridge’s recent investments, offers commuters real-time bus timetables and locations. You can’t get much more mundane than public transportation – yet hundreds of millions of users take buses round the clock, and consumers are likely to open that app multiples a day.It’s not surprising, then, that nine of India’s top 10 unicorns by value are in the online-consumer space, according to data compiled by CB Insights. The outlier is ReNew Power, an independent wind and solar-energyproducer. In China, three of the top 10 are online consumer companies, two are bricks-and-mortar businesses, and the rest are a mix of hardware and B2B.The latest Indian unicorn, however, could hint that a new sector is developing. Icertis Inc., which makes cloud-based contract-management software, just raised $115 million, propelling it into the unicorn league, Bloomberg News’s Saritha Rai reported this week. While it’s dual-headquartered in Bellevue, Washington and Pune, India, the company has more than two-thirds of its staff in India where the product is developed. Based on its current trajectory, Icertis has every chance of breaking out of the outsourcing model that made India’s IT sector famous over the past two decades. That’s because it’s making real software for enterprises to use, rather than employing thousands of people to run software on behalf of Western clients at a fraction of the cost.India is going to need more such companies, as big names in IT outsourcing, including Infosys Ltd. and Tata Consultancy Services Ltd., face pressure from cloud services, stricter U.S. visa rules, and a call to bring back Western jobs. If they weaken, then so too may India’s supply of foreign income. Of 30 soonicorns identified by Indian media outlet Inc42 as having the potential to fetch a $1-billion-plus valuation by 2020, five are in enterprise tech. One of them, Druva Software Pvt., is a cloud data-protection provider with a suite of global clients. A $130 million round of funding last month subsequently raised the company’s valuation above $1 billion, a spokesperson told Bloomberg Opinion. Another is Atlan, which makes data-management software.India’s startup scene is relatively new compared with China’s, and its economy is much smaller despite their populations being of similar size. That helps explain why there are 94 unicorns in China and 19 in India.Still, I have no doubt that India’s tally will rise rapidly, hitting 50 by 2025, with a mix of companies that meet local consumer needs and businesses making crucial enterprise software for global clients. Contract management and food delivery may not be as chic as electric cars or artificial intelligence, but India is about to prove that you don’t need to be hip to be hot.(Updates ninth paragraph to reflect Druva’s latest valuation. )To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Rachel Rosenthal at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Snap, Planet Fitness, RH, Twitter, and a number of other stocks should surge over the next several months, according to Sentieo, which uses a unique set of data to form its predictions.
Snap's (SNAP) Q2 results are expected to benefit from the company's innovation strategies, which are driving growth in DAU and user engagement.
We highlight tech stocks that might come up with promising earnings results despite inventory glut, trade war and regulatory scrutiny.
There's a call to regulate Amazon but it's unclear to what extent and whether it will stunt the company.
Snap (SNAP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Snap Inc. (NYSE:SNAP) stock has done very well in 2019. SNAP stock price has rallied 178%. Among stocks with a market capitalization over $10 billion, Snap Inc stock has been the fourth-best performer in 2019. Only Array BioPharma (NASDAQ:ARRY), Sea Limited (NYSE:SE), and Roku (NASDAQ:ROKU) have been better.Source: Shutterstock To be honest, I've misread SNAP stock. I thought in April that the gains had gone too far, and doubled down on that theory last month. That said, I've understood why optimism toward SNAP has risen. Its user growth is starting to show signs of life after flat-lining in 2018. Its disastrous Android app redesign has been fixed. And Snap, as I've argued for some time, has a path to significantly improve the monetization of its users, particularly overseas. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Of late, Wall Street analysts have picked up on that bull case. At least four firms have upgraded SNAP stock , and one of those upgrades sparked a big jump in SNAP stock price. But it's hard not to wonder if the Street is late to the party and if its sudden interest in Snapchat stock might signal a top. If long-bearish analysts have turned bullish, too, who can still turn bullish on Snap stock?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap Gets UpgradedAt least three analysts have changed their tune on SNAP stock in just the last month. In mid-June, Aegis Capital raised its target price on SNAP stock to $17 and upgraded SNAP to a "buy." The firm increased its revenue estimates, citing higher ad sales and increased use of the Android app. The firm had argued only a few months earlier that CEO Evan Spiegel should sell the company, but said in its recent note that it had decided to "walk back" that argument.The same day, well-respected tech analyst Rich Greenfield of BTIG Research upgraded SNAP stock as well, setting a price target of $20. That target became the highest among analysts covering the stock, though it's "only" about 39% above the current levels of SNAP stock. Greenfield, like Aegis, increased his top-line outlook for the company, also citing the improved monetization of its users and the growth of the Android app, in an interview with Yahoo! Finance.The two upgrades sparked a nearly 10% jump in SNAP stock price, propelling it to a 14-month high. Two weeks later, a third firm, MoffettNathanson, highlighted what it called the potential "Cinderella story" of Snap Inc, and projected a blowout Q2 earnings report in early August, driven by faster-than-expected user growth.Moffett analyst Michael Nathanson didn't upgrade SNAP stock, citing valuation. But as recently as October, the same firm had a $6.50 price target on Snapchat stock and was questioning if it would need to raise capital. The firm's change in sentiment is significant, even if kept a 'neutral' rating on the shares.Finally, Goldman Sachs jumped on the bandwagon last week, moving SNAP stock to a 'buy' with a price target of $18. That firm cited the same improving user numbers as many of its peers. Has SNAP Stock Price Reached a Top?MoffettNathanson's reversal highlights the risk to SNAP stock now. Analysts turned bearish on SNAP near its bottom: indeed, the stock hit an all-time low less than three months after MoffettNathanson's October note.Are the same analysts turning bullish at the top of SNAP stock price? It wouldn't be surprising, and there's evidence that it might be the case. SNAP stock actually has weakened modestly since Aegis and BTIG upgraded it in mid-June.The story analysts are telling isn't really surprising the bull case for SNAP even at the time of its IPO was based on user growth combined with gains in its revenue per user. The fact that Snap Inc is making progress isn't a secret, either: the company posted strong Q1 earnings.Meanwhile, Snap's better outlook is priced into Snapchat stock, at least to some extent. Again, the SNAP stock price has risen 180%+ in about six months. It's added over $13 billion in market value over that period. Snapchat's performance may have improved, but its valuation now is a question mark.Indeed, that's the case I made at $10 and then at $12. With SNAP stock above $15, the reasons for concern seem stronger. SNAP trades at more than eight times analysts' average 2020 revenue estimate, and it's not expected to report profits for at least another two years. Competition for advertising will remain fierce: Facebook (NASDAQ:FB), Twitter (NYSE:TWTR), and Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) aren't going anywhere.The story analysts are telling may be right, as Snap Inc is improving. But SNAP stock price has tripled from its December lows, so a lot of improvement already is priced into Snapchat stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Analysts Are Turning Bullish on Snap Stock at Its Top appeared first on InvestorPlace.
This week, the pair announced they have renewed the sales partnership withoutrevealing how revenues are divided between the two and when the extendedagreement expires
Baidu, Inc. (NASDAQ: BIDU ) and Snap Inc. (NYSE: SNAP ) have renewed their Asia sales partnership , which first began in May of 2017. The agreement authorizes Baidu to act as Snap’s representative to advertisers ...
Baidu, Inc. and Snap Inc. announced today the renewal of their sales partnership, which first began in May 2017. The agreement authorizes Baidu to act as Snap’s representative to advertisers in Greater China, Japan and South Korea.
Generation Z, born after the year 2000, has grown up in a world dominated by the cloud czars, where cynicism about technology motives and actions is pervasive, and where protecting your identity rather than publicizing it is the norm.Source: Shutterstock It's a vast new market that Snap (NASDAQ:SNAP) thinks it can win with new features and augmented reality.Wall Street has been buying this argument, and loving the growth, in 2019. Shares that traded at under $6 in January are now trading at over $15. The market cap is up to $21.1 billion and CEO Evan Spiegel, once considered Facebook (NASDAQ:FB) road kill, now has a net worth of $3.5 billion.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dependable Dividend Stocks to Buy But the shares are still below their post-IPO high, below their February 2018 peak. Snap is still a minnow next to Facebook, let alone Chinese giants like Tencent Holdings (OTCMKTS:TCEHY). Does this move have legs? The Bull Case for SNAP StockSnap's growth is once again in overdrive. After bringing in $1.18 billion of 2018 revenue, the company brought in $320 million in the first quarter and is expected to report over $350 million for the June quarter on July 23, albeit with an 8 cent per share loss. If it can keep that up for the rest of the year, Snap could bring in $1.52 billion for all of 2019, a growth rate of nearly 29%.Snap is getting new respect from developers for Scan, an augmented reality platform that can be used to create .gifs on the fly, solve math problems from pictures, and become the heart of a new gaming system.Previous AR platforms lacked the community and daily use to interest Wall Street. Snap is also rolling out a new ad platform to monetize Scan. It says it is now used by 90% of 13-24 year-olds, which is more than Facebook reaches with either its main platform or Instagram.Snap's earlier features, like self-erasing messages, were quickly copied by Facebook. The hope is it can innovate its way away from the larger company. Goldman Sachs (NYSE:GS) recently put Snap back on its buy list. Analysts are also enjoying a new gender swap filter that can let users disguise themselves to friends. The Bear Case for SNAP StockThere can be a downside to anything.Stalkers could use the gender swap filter to cozy up to victims. The AR platform could also be misused. Snap is still focused on making money from advertising built on personal information, which is why many turned away from Facebook and even Alphabet's (NASDAQ:GOOGL, NASDAQ:GOOG) Google.Snap has gone from being cheap to being overvalued, cynics say, arguing bulls are getting ahead of themselves. They note that Twitter (NASDAQ:TWTR) generates three times Snap's revenue from a smaller user base. They say paying more than 10 times expected 2019 revenue for a money-losing company near the end of a recovery is, at best, speculative. Even some who are bullish on Snap are now suggesting option strategies to limit risk. The Bottom LineSnap is more than fully valued.If you're going to put money into it, you are going to have to watch that money closely. A negative earnings report, or a single bad headline, can still send Snap crashing to Earth.If you got into Snap at its lows, a hard fall still leaves you with an attractive acquisition target, at a price higher than what you paid. But even in that case, the take-out would not be at a premium to the current price.What you're left with is a trade, a speculation for young investors who might lose their stake but will at least learn a lesson from it. If you make this old man look foolish with your fat profits, you can buy me dinner.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Snap Stock: The Youth Market is Back appeared first on InvestorPlace.
Is Twitter stock a buy now? Check out the stock's fundamental and technical metrics to figure out if the stock should be on your watchlist.
(Bloomberg) -- Snap Inc.’s more than 180% climb this year is evidence of the social platform’s "impressive turnaround" but a recovery from when Kylie Jenner swayed teens to exit the app over a year ago may have run its course, according to Morgan Stanley.The company’s "current fundamental improvements are more than fully priced into the share price," analyst Brian Nowak told clients in a morning research note. Shares fell as much as 2.1% in early trading Monday as Nowak reiterated his bearish thesis with an underweight rating, citing potential compression of the company’s valuation multiple.Recent checks within the industry suggest new product launches and better execution from Snap’s management has likely sparked user growth and improved metrics for active users, prompting Nowak to boost his price target by $4 to $13 per share. But the stock’s incremental rally this year heightens the risk of relative under-performance going forward.Read more: Snap’s Gender-Swap Filter Went Viral -- and So Did the StockMorgan Stanley is one of six U.S. equity firms with a sell-equivalent rating, according to the 39 analysts tracked by Bloomberg. Snap reports financial results for the second quarter on July 23 after markets close.To contact the reporter on this story: Kamaron Leach in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-Linsk, Jeran WittensteinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Twitter (NYSE: TWTR) and Snap (NYSE: SNAP) have struggled for years competing with Facebook (NASDAQ: FB) in the social media game. However, investors may now finally have a viable Facebook alternative in Pinterest (NYSE: PINS). Even after a bumpy IPO, Pinterest stock still has added more than 8% since April.Source: Shutterstock Like Facebook, Pinterest is primarily an advertising company. Like Facebook, Pinterest has plenty of exciting long-term growth opportunities.But unlike Facebook, PINS stock doesn't come attached to antitrust risk. Pinterest also doesn't have significant regulatory concerns and negative press about the harmful effects of its service.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Pinterest Stock Growth StoryPinterest has plenty of growth opportunities starting with simply expanding its user base. The company reported 291 million monthly active users in its first quarterly earnings report in May. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond That number represented 21.7% growth from a year ago. The good news for investors is that Pinterest's user base doesn't seem to be plateauing just yet. That phenomenon has plagued both Twitter and Snap in recent years.Pinterest also seems to have plenty of room to improve its average revenue per user. Pinterest reported ARPU of 73 cents last quarter, an annual run rate of about $3. There seems to be plenty of opportunities for Pinterest to better monetize its user base given Facebook, Twitter and Snap have annual ARPU's of around $25, $9 and $6, respectively.Finally, Pinterest is investing heavily in expanding its Partners program to integrate third-party technology into its platform. According to Nomura Instinet analyst Mark Kelley, the latest group of Pinterest partners have dramatically improved ecommerce functionality on the platform. Users now have the ability to set up stores on Pinterest. Pins for certain products can also connect users directly to retailers for purchases.More than half of Pinterest users already use the app while they are shopping in brick-and-mortar stores, according to market researcher GfK."As the company's e-commerce efforts scale (Catalogs and Shopping Ads were outlined on the 1Q19 call), we think transactional capabilities could be a notable source of upside for the company's financials," Kelley says. Pinterest Stock Doesn't Have BaggageIn addition to the growth opportunities, PINS stock may have a key advantage over FB stock when it comes to investor sentiment and risk. There's no question Facebook's advertising business has been firing on all cylinders for years. However, there has been increasing uncertainty among investors about what the company's long-term future holds.First, Facebook, Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) recently has been the subject of a wave of antitrust rhetoric. For example, Democratic presidential candidate Elizabeth Warren has called for these tech companies to be broken up due to their size. Alternatively, regulators may force Facebook to change its business at some point to promote competition.At the same time, Facebook is facing scrutiny because of its size, it's also facing scrutiny because of its business. The Cambridge Analytica scandal and the abuse of social media platforms by foreign powers have investors worried about costly new regulations restricting data usage, content and access on Facebook's platform.Finally, another recent study has linked use of Facebook to depression. This study is simply adding fuel to the fire of groups calling for users to delete Facebook, Instagram, Snapchat and other popular social media accounts for their own good.Regardless of whether or not users leave the platforms, advertisers are well aware of the negative perceptions. The negative impact of Twitter and Facebook use have particularly captured the media's attention. Pinterest has a much better reputation as a positive platform. Advertisers certainly want their products associated with this type of positivity rather than a platform that has been linked to depression, suicide and ethnic cleansing. Pinterest Stock Has Its Own RisksPinterest stock may look like a much safer investment than FB stock when it comes to headline risk. Unfortunately, when it comes to financials, Pinterest is not a safe bet.PINS stock currently trades at a staggeringly high 17.5 price-to-sales ratio. Like other high-profile 2019 IPOs such as Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT), Pinterest is not yet profitable. In addition, these tech IPOs have a horrendous track record in their first year of trading, suggesting upside for PINS stock may be limited in the near-term.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Pinterest Stock Very Well May Be the Best Alternative to Facebook appeared first on InvestorPlace.