13.53 +0.01 (0.07%)
After hours: 7:50PM EDT
|Bid||13.50 x 4000|
|Ask||13.51 x 1300|
|Day's Range||13.42 - 14.28|
|52 Week Range||4.82 - 18.36|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 22, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||17.66|
Social media users have plenty to type about these days, but not every platform is buzzing. Snap demonstrated strong execution over the last year, and it’s poised to profit near-term from the Android app, the launch of a gaming platform, a sales reorganization and premium content partnerships.
Snap announces new advertising product, Dynamic Ads to boost advertisement revenues from retail, e-commerce and other direct-to-consumer (DTC) brands.
Bank of America Merrill Lynch analyst Tim Post writes that a recent selloff in the shares provides a buying opportunity ahead of third-quarter earnings.
Snap's (SNAP) third-quarter results are expected to reflect benefits from initiatives related to original shows and innovative features in Snapchat amid stiff competition.
Shares of Snap Inc. are up 1.3% in Friday morning trading after Bank of America Merrill Lunch analyst Justin Post upgraded the stock to buy from neutral. He said that Wall Street "appears to be concerned on high 3Q [daily-active-user] growth expectations" but that he's less concerned given his projection for strong international Android downloads and better engagement with Discover content on the platform. With the launch of eight new Snap shows this fall, Post has increased conviction that Snap will be able to boost its average revenue per user as it benefits from the secular shift of TV ad dollars to online platforms. Post has an $18 price objective on the stock, which has climbed 154% so far this year as the S&P 500 has increased 20%.
Snap Inc (NYSE: SNAP) has seen steady gains year to date. This is one factor informing Bank of America’s upgrade. “The Street appears to be concerned on high 3Q DAU [daily active user] growth expectations and 4Q DAU weakness given recent Ad Manager checks that suggest declines in Sept/Oct ad user reach,” the analysts wrote in a note.
The Q3 Snap earnings report is due on October 22. So could a positive surprise be enough to send Snap stock back toward its original price?
Snap has grown revenue and its userbase as larger rivals Alphabet's Google and Facebook Inc , which dominate the global digital advertising market, face regulatory scrutiny over their market control. Both Google and Facebook already offer dynamic ads. Dynamic ad platforms pick items from advertisers' product catalogs and target them automatically to people with relevant interests, removing the need to manually advertise each product individually.
Twitter (TWTR) stock has surged roughly 40% in 2019 to fall just behind Facebook's (FB) 45%. Despite the run of success, Twitter shares remain an enigma to many on Wall Street...
TikTok's short-length video platform has become quite popular with younger consumers. But it isn't exactly a substitute for services such as Instagram and Snapchat Stories.
World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. […]
Snap (SNAP) stock has been on a downtrend recently. It's dropped nearly 20% since September 25 despite the absence of any significant news.
When social media firm Snap (NYSE:SNAP) went public two and a half years ago, the initial reaction to the stock was disappointing. Snap stock has rebounded in epic fashion this year, surging more than 156% as of Oct. 11.Source: Ink Drop / Shutterstock.com Snap is usually thought of as being the purveyor of the popular Snapchat social media platform, one that puts the company in direct competition with Facebook's (NASDAQ:FB) Instragram. In addition to Snapchat, the company's other marquee products are Bitmoji and Spectacles. However, management wants investors to consider Snap stock through a different lens (pun intended).This how the California-based company describes itself in corporate press releases: "Snap Inc. is a camera company. We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together."InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestors reconfiguring their view of Snap stock and the drivers of the shares' performance is a work in progress. As noted above, the typical view of Snap stock is that it's the company behind Snapchat. That's not a bad thing. Wall Street is increasingly warm to Snapchat's operating performance and the platform's revenue-generating capabilities.Earlier this month, Morgan Stanley analyst Brian Nowak and his team upgrade Snap stock to "equal-weight" from "underweight," while boosting their price target on the shares to $17 from $14. That $17 price forecast is just below the Wall Street consensus of about $17.50, but still implies upside of 20% from the Oct. 11 close of $14.16. * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk "Year-to-date we have underestimated Snap's stronger top- and bottom-line execution and ability to drive growth," said the Morgan Stanely analysts in a note to clients. A Path to ProfitabilityIn the current market environment, investors are displaying little tolerance for companies that are losing money and even less patience for those that cannot clearly articulate when profitability will arrive. Those sentiments are true across multiple industries.Fortunately for Snap stock, when the company reported second-quarter earnings a few months ago, losses narrowed and the goal of full-year GAAP profitability remains very much in reach. The company will get another chance to highlight its path to profitability on Oct. 22 when it reports third-quarter results. The upcoming earnings update is critical to the near-term fortunes of Snap stock because the company guided higher for this quarter, meaning management must, at a minimum, meet those expectations, if not a beat them.Advertising dollars are major revenue drivers for Snap and while the company has some compelling content partnerships with the likes of The New York Times, ESPN and Vogue, the fight for digital advertising cash is notoriously intense."In terms of Snap's addressable market, while digital ad budgets continue to grow, so does the number of ad inventory providers in the space, and there is no guarantee that a larger portion of new digital ad dollars will flow to Snap," said Morningstar in a recent note.The research firm notes that Snap is competing with the likes of Facebook and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) in the digital ad universe and that the competition is difficult for newcomers to encroach on the dominance of those two internet giants. Bottom Line: Worth The RiskEven after more than doubling than this year, Snap stock is still worth a look as a small position for tactical investors. The company is still in its early innings of growth and if it can continue growing content partnerships along with user engagement, upside could be considerable. * 7 Semiconductor Stocks to Buy Now As Morgan Stanley notes, there's "room for higher monetization" in North America and management's execution has been surprisingly impressive this year. Still, waiting on profitability will require some patience for Snap stock investors."While Snap's augmented reality offerings will continue to bring more users onboard in the near-term, we believe the presence of Instagram will continue to pressure no-moat Snap's user growth in the long-run," according to Morningstar. "However, we also remain convinced that Snap's user monetization will strengthen as the firm continues to attract more ad dollars."For investors compelled to enter Snap stock at current levels, the $16 area or the $17 target highlighted by Morgan Stanley likely represent fair value unless management surprises with significant upside guidance for the fourth quarter and 2020.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Snap Stock Has Plenty of Strength Left Despite Upcoming Challenges appeared first on InvestorPlace.
Pinterest (NYSE:PINS) is down 30% from its all-time high of $36.83/share with Pinterest stock currently trading around $25.80/share, well above April's IPO price of $19/share. The social media platform continues to see explosive growth.Source: Nopparat Khokthong / Shutterstock.com But the upside potential could already be priced into shares. Based on valuation, it seems that investors may be better off waiting for lower prices before diving into PINS stock.Let's take a closer look, and see why now may not be the time to buy Pinterest stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Turning PINS into DollarsFor the quarter ending June 30, 2019, sales grew 62% from the prior year's quarter to $261.2 million. The company continues to generate operating losses. But based on analyst consensus, the company could reach profitability by next year. * 10 Super Boring Stocks to Buy With Super Safe Returns What kind of profitability can we expect in the future? Back in June, Wedbush's Ygal Arounian estimated EBITDA could soar to $260 million by 2022. But considering the company's enterprise value ($12.3 billion), this implies a rich valuation.Pinterest continues to improve monetization. The average revenue per user went up 29% YoY. The company has just started building out its international ad sales platform. With the bulk of users located outside of the United States, this implies a significant runway for growing the ad business.PINS is also expanding beyond traditional online advertising. Thanks to AI technology, the company now has the capability to identify purchasable items in images hosted on the platform. This opens the door to another material revenue stream. These factors will be material in sustaining the current growth trajectory.On an enterprise/sales (EV/Sales) basis, shares trade a premium to social media peers. In addition, there is no guarantee PINS won't stumble in its quest to grow. Let's take a closer look at PINS stock valuation, and see how it stacks up to peers. Pinterest Stock Richly PricedPinterest stock currently trades at an EV/Sales ratio of 13.3. This is in line with social media competitor Snap (NYSE:SNAP). Snap trades at an EV/Sales ratio of 13.3 as well. However, the other public social media names trade at lower valuations:Facebook (NASDAQ:FB): EV/Sales of 7.6Twitter (NASDAQ:TWTR): EV/Sales of 8.3But Pinterest's explosive growth may justify this. However, expectations of 50%+ growth over the next few years leaves little room for error. Shares could take a nosedive if the growth story faces a headwind.What sorts of headwinds could PINS stock face? A new social media platform could gain critical mass, stealing share from Pinterest. Growth could cool sooner than expected. Even if PINS stock posts decent sales growth numbers (~20% range), based on the current share price this would be below expectations.An additional downside risk is the end of the IPO lock-up period. Pinterest's will expire on October 15. This means more insider shares could be sold, creating a negative short-term impact. Pinterest Stock Has Gotten Ahead of ItselfPinterest has tremendous growth potential. It continues to post 50%+ sales growth and has only started monetizing its overseas user base. The social media platform's focus on consumer items is like catnip to advertisers. But the stock price seems has gotten ahead of itself. While the company has runway, it unlikely will become as big as Facebook or Twitter.This could be due to the niche nature of Pinterest's business. As InvestorPlace's Josh Enomoto wrote on Oct. 2, women predominate Pinterest's user base. Without a more diversified user profile, it may be hard for Pinterest to scale into a Facebook or Twitter-sized company.On the other hand, I could be Pinterest being a takeover target for big tech. The social media companies could easily buy Pinterest, integrate its back-end into their existing infrastructure, and maximize the platform's value.A buyer such as Amazon (NASDAQ: AMZN) could use it as a vehicle to further grow its ecosystem. While the company sells at a high valuation, it may be worth the price for the right buyer.But other than that, I am skeptical on Pinterest stock. Past results have been strong, but I can easily see grow start to cool once international monetization is complete. With slower growth, shares will either tread water or head lower. Add in the expiration of the IPO lock-up, and today does not sound like the time to buy PINS stock.Keep Pinterest stock on your radar, but wait for lower prices for a better entry point.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Pinterest Stock Is Richly Valued and Running out of Room to Run appeared first on InvestorPlace.