|Bid||16.01 x 3200|
|Ask||16.00 x 3000|
|Day's Range||15.66 - 16.13|
|52 Week Range||4.82 - 18.36|
|Beta (3Y Monthly)||1.11|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 23, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||16.38|
(Bloomberg Opinion) -- WeWork is slightly less WeWork, but it's still very WeWork.The commercial real estate/wannabe tech company shed a few of its egregious provisions that gave Adam Neumann, the company's co-founder and chief executive officer, an unusual measure of authority over his company – including the power through his wife to pick his replacement from beyond the grave. WeWork also agreed to cut in half the voting power of Neumann’s stock, and he will hand to the company any profits he receives from real estate properties he had owned and leased to WeWork. If you’re new to reading about this company, yes, all of those eyebrow-raising things happened at WeWork.Neumann is an extremely effective pitch man for his company, but it's understandable that potential investors in WeWork’s initial public stock offering reportedly balked at buying wildly valued shares of a company with a short operating history, unsteady unit economics, a governance structure that favors one person above all others, a history of questionable spending and – oh yes – an obligation to pay nearly $50 billion in lease payments in coming years. Neumann's willingness to dump some of the terms that enriched or empowered him shows how badly WeWork needs the money to fund its ambitious, or perhaps unsustainable, business. The company burned $2.2 billion in cash last year, and those conditions aren't likely to change soon. If it wasn't able to get an IPO done, WeWork would have lost out on as much as $10 billion in fresh cash from the stock sale as well as bank loans that are in part contingent on the IPO. That is a lot of motivation to make promises, but not too many. “Corporate governance is important to our company,” is a sentence written in WeWork’s updated IPO prospectus filed Friday. If that were true, of course, we would never have gotten to this point. WeWork and Neumann will likely have to take the psychological blow of a steep valuation haircut in an IPO, although it remains to be seen how much. Bankers months ago were talking about WeWork meriting a stock market value of as much as $65 billion; it now may be significantly south of $20 billion.WeWork's valuation as a private company was always a fiction written by Neumann and his biggest financial backer, the Japanese telecom giant SoftBank. But assuming WeWork goes public at a significantly reduced number to its fictional valuation, it nevertheless could have real consequences for SoftBank's relationships with partners in its massive tech-focused investment fund, and for WeWork employees who might be holding overvalued stock. Even after the changes WeWork was forced to make, this is still a company controlled almost entirely by Neumann – who seems fine using it as a foundation to collect many hundreds of millions of dollars from personal loans or WeWork stock sales – that’s run with the discipline of bears escaped from a circus and structured to funnel profits and minimize taxes for Neumann and a tiny cadre of others. As I said, WeWork is still very WeWork. In the outrage that exploded since WeWork released its IPO prospectus last month, there has been justifiable blame on Neumann and on SoftBank's bazooka of cash for letting WeWork get so very WeWork. Let's not stop there. There is plenty of blame to spread around. WeWork has a legion of experienced investors who poured more than $12 billion into the company, sat on its board of directors and apparently bought Neumann's vision and empowered him to do whatever he wanted. Let’s point fingers at JPMorgan Chase & Co. and other banks that lined up to lend Neumann money, presumably with dollar signs in their eyes hoping to do business with his company. When no one wants to kill or even slightly inconvenience a potentially golden goose, it can’t be a surprise when the goose makes an utter holy mess. As my Bloomberg Opinion colleague Matt Levine wrote recently, the oddity of WeWork is that it actually had to make compromises as it graduates from startup to a public company. This hasn't been typical in the last few years as young and cool companies from Snapchat to Lyft and Slack started going public. They've been able to stay the same insulated, founder-empowering startups, giving the new owners of their companies as little influence as possible while basically continuing to do whatever they wanted – just as they had when they started in a proverbial garage. WeWork broke that mold. WeWork still might do just fine as a public company. Or not. The tepid at best public market reception to Uber, Lyft, Snap and others shows that stock investors aren't solely persuaded by the bright shiny object of fast revenue growth, if a company doesn't have a proven business model or can't competently execute its business plan.However the IPO goes, WeWork's difficulties hitting the stock market should – but probably won’t – spark soul searching among those who start companies and support them with financing in Silicon Valley, on Wall Street and far beyond. Some big ideas have bloomed in the last decade that wouldn’t have been possible without the easy availability of cash for young tech companies. But I have grown increasingly worried that the limitless cash has created a generation of bad companies. When we look back at the "unicorn" wave of the 2010s, we may see companies puffed up by easy money and limping along on flabby financials, with cash spackling over the glaring holes in their business models. I worry the easy money has ossified in young companies a lack of accountability, with egotistical and insular leadership.That is the downside of the free-cash era for unicorns. WeWork may be the apotheosis of the phenomenon, but it is far from a singular example of startup rot.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
In addition to its huge losses, terrible business model, and laughable corporate governance, one of the main reasons WeWork is struggling to go public is the dismal performance of other so-called super-unicorn stocks over the past couple of years.
(Bloomberg) -- Snap Inc. should continue to see growth in the critical metric of daily active users, according to analysts who analyzed the latest data on downloads for the social-media company’s Snapchat app. The data helps to support the thesis that a recent uptrend in user engagement could be lasting.Guggenheim wrote that SimilarWeb’s August data showed “relatively stronger DAU growth” for Snapchat compared with other social-media sites. Snapchat’s quarter-to-date growth of 3.2% among Android users outpaced Pinterest’s 2% growth, as well as the 0.5% increase seen at both Facebook and Instagram, according to the Wall Street firm, which has a neutral rating on Snap. Both Facebook and Instagram -- which is also owned by Facebook Inc. -- have much larger user bases than Snapchat.Snap had 203 million daily active users in its second quarter, up from 190 million in the first quarter, and 188 million in the second quarter of 2018. Daily active users are expected to grow to 205.8 million in the third quarter, according to Bloomberg MODL estimates.Citi analyst Hao Yan wrote that while the correlation of downloads to daily active user growth “is yet to be perfect,” there are “strong upward trends” in download activities thus far this year. This “corresponds to the positive SNAP DAU recovery in recent quarters.” The firm has a neutral rating and $18 price target on Snap.While the SimilarWeb data is limited to Android phones, Citi said that if July and August’s activity trends continue in September, “the downside risk on 3Q DAU outlook could be more limited vs what was suggested by the recent market reaction.”Earlier this week, Bank of America estimated that app downloads thus far in the third quarter were up 23% on a year-over-year basis, a reflection of the recent viral success of Snapchat’s “face swap” photo filters. However, they were down 18% from the second quarter, underlining fears that the jump in popularity was temporary, and that stock gains were overdone.Those comments from BofA contributed to a two-day drop of nearly 10% in Snap’s shares. Snap rose 1.2% as of 12:03 p.m. Wednesday in New York. The stock has tripled from a December low.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jeremy R. Cooke, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Facebook Inc. said it will begin sharing public data about how users talk about suicide as part of ongoing efforts to address concerns about suicide and self-harm on the social media site.In a blog post on World Suicide Day, Facebook said it will give academic researchers access to CrowdTangle, a tool often used by news and media organizations to monitor social media, to explore how information shared on Facebook and Instagram can be used to help prevent suicide. The company will also include guidelines for talking about mental health by Orygen, an organization that studies youth mental health, on the platform’s Safety Center and hire a health expert to join its safety team.The moves grew out of consultations Facebook has been having since earlier this year with experts to discuss some of the more difficult topics related to suicide and self-harm. Facebook has also tightened its policies to no longer allow images of graphic cutting and making it harder to search for this type of content on its apps.Facebook uses software algorithms to find posts related to self-harm, an approach it also employs for other types of sensitive content like posts promoting terrorism or child pornogrophy. Facebook says it removed or added a sensitivity screen to more than 1.5 million pieces of suicide or self-injury related content between April and June, and said it found 95% of those posts before they were flagged by another user. It did the same for over 800,000 pieces of content on Instagram.Facebook will sometimes send resources to individuals who created the posts or, in cases of imminent danger, alerts local authorities.Governments and academics have raised red flags about rising rates of suicides among teens that appear to correspond to the increasing popularity of social media. A study published by the JAMA Open Network in May didn’t cite a specific cause for an increase in suicides since 2007, but other researchers who looked at the data questioned the role of social media in the spike of incidents. In April, the U.K. asked Facebook, along with Alphabet Inc.’s Google and Snap Inc., to commit to dealing with the issue.“Experts have told us that one of the most effective ways to prevent suicide is for people to hear from friends and family who care about them,” Antigone Davis, Facebook’s global head of safety, wrote on the blog. “Facebook has a unique role in facilitating those kinds of connections and we’re taking additional steps to support those who are discussing these sensitive topics, especially young people.”(Updates to include statistics about the number of suicide-related posts Facebook took action on.)To contact the reporter on this story: Kiley Roache in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Molly Schuetz, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Coca-Cola's fruit-flavored soda Fanta is "reinventing itself" for today's teenagers with an marketing campaign focused on technology and personality. The result includes a DJ cat in a convenience store and an 8-bit videogame-ified pizza parlor.
Snap (SNAP) stock fell around 7.9% on Monday. The decline came after a Bank of America analyst noted a sequential fall in the top US app downloads.
A week ago, Evercore ISI upgraded Snapchat parent Snap (NYSE:SNAP), touting the potential of its new gaming options. Literally the same day, analysts and observers were lamenting the fact that SNAP stock wasn't moving higher on the upgrade.Source: ArthurStock / Shutterstock.com Granted, the lethargy was a disappointment. Right or wrong, most stocks move higher immediately following the announcement of a freshly bullish opinion. To not see it happen this time around wasn't exactly the norm.On the flip side, Snapchat stock is anything but your normal name. The company remains trapped between being a startup and being an established outfit. Investors aren't quite sure how to trade -- or even value -- it.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf its fans and followers would just take a breath and relax though, they'd find the SNAP stock price is still rising. It's just doing so on its own terms. Snapchat is the Real DealIt's not a company that needs much in the way of an introduction. Launched in the middle of 2011 and public since early 2017, Snapchat has been pigeonholed as a third social networking platform in an arena with only room for two: Twitter (NYSE:TWTR) and Facebook (NASDAQ:FB).Except, maybe there's room for a third one after all. * 10 Stocks to Sell in Market-Cursed September The past and projected numbers certainly say Snap is doing something right when it arguably shouldn't be. After a wobbly start as a publicly traded company, for instance, its second-quarter addition of 13 million daily users took the company to a record number of 203 million daily check-ins.The company is monetizing those users better as well. Last quarter's top line of $388 million was up 48% year-over-year, and perhaps more importantly, the loss of 6 cents per share of SNAP stock was better than the loss of ten cents per share analysts had been modeling.It's a microcosm of a much bigger trend that suggests the company will earn its way out of the red sometime in late 2020 or early 2021. Failure to Launch Isn't a ConcernThe stock's chart broadly reflects this continued progress.After sliding from its IPO price of $17 to last year's low of $4.82, the SNAP stock price has "snapped" back to its current value near $15.30. The catalyst? Realization that CEO Even Spiegel had found several critical balances between the short term and the long term, as well as the fine line between enough ads and too many ads.Still, the financial media has remained oddly nitpicky regarding Snap stock.Case in point: On Sept. 3 Evercore ISI analyst Kevin Rippey upgraded SNAP stock from "In-line" to "Outperform" largely on the additional growth prospects stemming from Snapchat's foray into gaming. Shares initially moved higher, but before the end of that day's trading TheStreet.com's Scott Van Voorhis pointed out that the gains turned back into losses. That same day, Barron's writer David Marino-Nachison made the exact same point.Both responses were factually correct. Both responses, however, understated the fact that Sept. 3 was the same day the S&P 500 took a 0.5% tumble. Perhaps more than anything though, both responses tacitly implied the lack of a knee-jerk rally is cause for concern.It isn't. Snapchat Stock Chart Tells the StoryThe noteworthy reality is, at the times of the upgrade, Snap stock was peeling back from a brush of the upper boundary of an established trading range. It deserved a break -- a break from what can only be categorized as an incredibly convincing recovery effort.That effort hasn't been an even one, to be fair. But, it's been a well-defined one, and still is.In other words, don't sweat the current weakness, including the bearish start to this week. It's all part of a bigger pattern in play, and perhaps a pattern that's looking to close the gap left behind by July's surge. It's marked in yellow on the chart above.The only real worry here would be a failure to find support at the lower boundary of the recent trading range framed by light blue lines. That support, however, is bolstered by the fact that the gray 100-day moving average line is lined up with it. Looking Ahead for SNAP StockNever say never, of course. It's entirely possible the SNAP stock price could break under that floor currently around $14.10 and continue to slide lower. We're at a time of year that isn't exactly friendly to stocks, and Snap isn't apt to be an exception to that tide.If the failure to rally immediately following the upgrade is your immediate concern, however, don't let it be. SNAP stock is still in that hazy period following its IPO where traders are unsure if it's a trade or an investment. During this interim period, strange things can happen.Whatever the case, a little more patience than it's been given is merited here. The bigger picture is still bullish for Snap, whether you're only thinking in the short term or mulling a long-term position.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Have a Little Patience With Snap Stock appeared first on InvestorPlace.
Snap Inc. (SNAP) shares fell more than 7% during Monday's session, accelerating a decline that began in late July and into early August. Earlier this month, Evercore upgraded the stock from In-Line to Outperform and raised its price target on Snap from $18 to $20 per share. Analyst Kevin Rippey was impressed by the trajectory of the social media company's fundamentals through much of 2019.
A social media comeback kid, one of the hottest media stocks of the past decade, and a high-yielding telco make the cut in this quest for the best stocks trading in the teens or lower.
Snap Inc. announced today that Evan Spiegel, co-founder and Chief Executive Officer, will participate in the Goldman Sachs 28th Annual Communacopia Conference in New York, NY on September 18, 2019 at 3:45 p.m.
Snap (NYSE:SNAP) stock has seen tremendous gains this year. Shares have soared from $5.38 on Jan. 2 to $16.62 at the close Sept. 6. Shares now trade at a substantial premium to social media peers Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR). But is this valuation justified? Snap posted strong earnings on July 23. But the company remains a social media also-ran.Source: ArthurStock / Shutterstock.com With these factors in mind, the SNAP stock price could easily "snap" lower. But as story stocks continue to rise, SNAP could rally higher.Read on to see why investors should look elsewhere for opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Current SNAP Stock PriceSNAP stock has stagnated since its July earnings release. But investors continue to give the company a premium valuation. With high expectations, what does Snap have in the cards to boost the share price? Mobile gaming could be the catalyst that sends shares higher. Evercore ISI's Kevin Rippey thinks so. The analyst upgraded Snapchat stock to "Outperform" on the company's future gaming prospects. Mobile gaming could generate $350 million in annual revenue by 2022. * 7 Stocks to Buy In a Flat Market But does this growth potential explain the current valuation? As InvestorPlace contributor Vince Martin wrote on Aug. 21, Snap needs massive growth to justify the current share price. By Martin's calculation, Snap needs to boost revenues by 40% just to break even. Even greater levels of growth are required for the company to "grow into its valuation."A new revenue stream could help inch Snap closer to profitability. But at the current valuation, is this opportunity worth the risk? Other social media properties are seeing growth slow. But they have the profitability Snap doesn't have. Let's compare SNAP stock to Facebook and Twitter, and see whether SNAP stock is a unique opportunity. SNAP Stock Trades at a PremiumUsing the enterprise value/sales metric, Snapchat stock trades at a large premium to Facebook and Twitter. Facebook shares trade at an EV/Sales ratio of 8.1. Twitter shares trade at an EV/Sales ratio of 9.6. But perhaps this premium is justified. Facebook's forward growth is 19%; Twitter's is 28.1%. With projected growth of 40% over the next year, SNAP stock may be worth the premium. But, at some point, growth must translate into profits.Snap may be able to continue riding the growth train. Nomura analyst Mark Kelley estimates Snapchat's user base could grow by between 5.5 million-10 million users this quarter. This is double Snap's projections of 2.5 million-4 million new users. This could indicate Snap's future growth prospects are higher than anticipated. Snap has not provided a date for the next earnings report. But based on historical trends, the next release date should be in late October.No matter the outcome, Snap needs continued high growth just to sustain its valuation. Any hiccup could devastate the SNAP stock price. What are the biggest risks? The much-anticipated recession could hurt ad revenue. A decline in digital ad spending would impact Facebook and Twitter. But given Snap's "also-ran" status, it could see a greater negative impact.Competitive pressure from Facebook is another risk. In the past, Facebook dropped the ball attracting Generation Z. With the unique Snapchat platform, Snap captured the zeitgeist of a rising generation. But Facebook is quickly regaining relevancy with the "Snapchat generation." Facebook's Threads app offers Snapchat-esque features within the Facebook universe. Bottom Line: SNAP Stock Priced for PerfectionSnapchat stock has seen big gains since January. But the company needs to meet expectations with results. Revenues are now over $1 billion per year. But can it continue growing revenue at a 40% clip? The company's move into gaming could help better monetize its user base. But Facebook is quickly catching up with new apps and features. This could reduce Snapchat's popularity among Generation Z.I do not want to be a SNAP bear. Given the strong performance of high-fliers such as Shopify (NYSE:SHOP) and Roku (NASDAQ:ROKU), all bets are off with large-cap growth names. A market correction could bring valuations back down to earth. But if the party continues for another year, the SNAP stock price could rally higher.But this is more of a speculation than a true investment. The fundamentals indicate SNAP stock is overvalued. Stay on the sidelines with Snapchat stock. Look for more solid opportunities elsewhere.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 * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Snap Stock Could Easily 'Snap' Back Lower appeared first on InvestorPlace.
Snap (SNAP) stock has been on the rise since the beginning of September. It's gained over 7% in the last seven days, rising from $15.51 on August 27.
Stocks are entering the new week with a significant technical tailwind. Last Thursday's price breakout finally launched the S&P 500 and other major indexes above their recent trading ranges, likely setting the stage for a return to record heights. Given the favorable backdrop, shopping for the best stocks to buy now seems wise.Today, I'm here to help. I've scoured the market for the best setups heading into Monday. A premium was placed on companies whose share price held up well during the recent market turmoil. Generally, stocks that hold up the best during corrections are those that lead the market higher when sellers finally depart.On top of relative strength, today's trio also boasts lower-risk entry points. Rather than chasing stocks extended from support zones, we're identifying those that are on the cusp of popping.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Buy-and-Hold Stocks to Own Forever With all of that in mind, here are three all-star stocks to buy now. All-Star Stocks to Buy Now: Snap (SNAP)Source: ThinkorSwim Snap (NYSE:SNAP) is on pace for a banner year. Its 2019 gain stands just shy of 200%. The turnabout has been fueled by better-than-expected earnings and a price trend that has roasted shortsellers. Since July's earnings announcement lit a fire under the stock, we've seen a falling wedge pattern form to digest gains.The pause has allowed the 50-day moving average to catch-up and overbought conditions to ease. It has also created a lower-risk entry point for traders reticent to chase after the earnings-driven rally. Friday's high-volume breakout completed the falling wedge and is pointing toward higher prices.To capitalize, buy the Jan $16 calls for around $2.30 if we break above today's high. The lower implied volatility is making long calls an attractive play. Yum Brands (YUM)Source: ThinkorSwim Yum Brands (NYSE:YUM) has been a steady grower this year. Its consistent ascent completely ignored the recent trade war drama, sparing shareholders the losses inflicted in so many other stocks. Its 2019 gain of 30% has bested the S&P 500's 19% by a hefty margin.Each time YUM stock has broken resistance this year, we've seen robust follow through to reward buyers. The track record has me eyeing its current basing pattern with interest. The $120 zone has thus far halted multiple recent rallies. But with the rising 20-day and 50-day moving averages pushing higher, I think it's only a matter of time before the ceiling gives way. * 10 Buy-and-Hold Stocks to Own Forever If you want to bank on the success of its breakout and a run into year-end, then buy the Jan $120/$125 bull call spread for around $1.90. The risk is $1.90, and the potential reward is $3.10. Alphabet (GOOGL)Source: ThinkorSwim Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) had an advantage heading into last month's market swoon that many of its tech peers did not. It scored a large up gap on earnings that pushed it well above its major moving averages. As a result, even though GOOGL stock suffered in August, it remained above its 50-day moving average, maintaining the integrity of its uptrend.And now, it's on the brink of breaching short-term resistance, providing a clean breakout setup for spectators to capitalize on.Implied volatility is dirt cheap, making call spreads the easy play here. Buy the Nov $1,220/$1,250 bull call spread for $14.50. The risk is $14.50 and will be lost if GOOGL sits below $1,220 at expiration. The reward of $15.50 will be captured if it sits above $1,250 at expiration.As of this writing, Tyler Craig held bullish positions in SNAP. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 3 All-Star Stocks to Buy Now appeared first on InvestorPlace.
Spotify users can now share their favorite music and podcasts with friends on Snapchat, the company announced this morning, with added support for sharing a song, playlist, artist profile or podcast either directly to your friends on Snapchat or to your Snapchat Story. Snapchat is now one of several destinations that Spotify users can share to, along with WhatsApp, Messages, Messenger, Twitter, Instagram Stories and, as of just last week, Facebook Stories. In addition to simply sharing music with friends, the feature also will make it possible for Spotify artists and their teams to promote their music to Snapcat's 203 million daily users -- most of whom are within the coveted teen to young adult demographic that Spotify's artists are hoping to reach.
U.S. stock futures are trading higher this morning in a continuation of last week's breakout. Optimism surrounding recent strides in the U.S.-China trade war survived the weekend intact, and investors have returned to the business of buying.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.22% and S&P 500 futures are higher by 0.34%. Nasdaq-100 futures have added 0.28%.In the options pits on Friday, calls were the hot commodity during a session that saw overall volume climb to above-average levels. Approximately 20.1 million calls and 15.4 million puts traded.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, over at the CBOE, Thursday's shallow reading in the single-session equity put/call volume ratio was followed-up by another low number of 0.56. The 10-day moving average continued its rollover with a drop to 0.66.Options traders favored calls in several marquee names. Home Depot (NYSE:HD) shares stretched to a new record high amid higher than usual options volume. Snap (NYSE:SNAP) finally broke out of a falling wedge pattern on high volume and unusual call activity. Finally, Amazon (NASDAQ:AMZN) shares paused after Thursday's breakout attempt, while buyers continued to chase calls. * 10 Buy-and-Hold Stocks to Own Forever Let's take a closer look: Home Depot (HD)Home Depot shares ended the week on a high note, rallying to a new record close at $231.13. Robust earnings growth, coupled with a firm price trend, have propelled the home construction giant to a 33% year-to-date gain. This compares to only a 19.3% gain for the S&P 500. Momentum traders flocking to relative strength no doubt have HD stock sitting atop their respective watch lists.Friday's surge cleared a prior pivot high signaling an official breakout that should bring buyers to the yard. That said, HD is moving into overbought territory so it's not the best entry point.On the options trading front, calls outpaced puts by a wide margin. Total activity grew to 287% of the average daily volume, with 130,643 contracts traded; 86% of the trading came from call options alone.Implied volatility remains in the lower quartile of its one-year range at 21%. The rank of 25% suggests selling puts, and bull puts will only yield small pay-days. If you're inclined to chase here, bull call spreads (such as buying the Nov $230/$240) offer a better risk-reward. Snap (SNAP)Snap shares have technicians salivating after Friday's textbook rally. The past month of consolidating took on the form of a falling wedge. And after pausing for a week to build momentum, SNAP stock finally burst higher with a high volume, 4.7% gain.The jump carried SNAP above near-term resistance and its 20-day moving average and signals its next upswing has officially begun. Look for followthrough to push the stock back toward its 52-week high at $18.36.Friday's buying bonanza lit a fire under options trading with calls leading the charge in a big way. By day's end, activity climbed to 283% of the average daily volume, with 259,428 total contracts traded. Calls accounted for 86% of the session's sum.Implied volatility ticked higher on the day but remained in the basement. At 52%, it rests at the 13th percentile of its one-year range. The low reading, coupled with Snap's cheap price tag, make long calls a compelling buy here. The Oct $16 calls could work for a short-term speculative bet. Otherwise, grab the Jan $16 calls to give yourself more time. * 7 "Boring" Stocks With Exciting Prospects Amazon (AMZN)Thursday's upside breakout in the tech-heavy Nasdaq is pointing the way for Amazon. Ever since July's beatdown, AMZN stock has been stuck in a trading range or base, biding time until demand would return and its long-term uptrend would resume. But if last week's awakening in stock indexes is any indication, the time for AMZN bulls to respond is now.Indeed, the stock did see a breakout attempt on Thursday, and though the follow through has been tepid, buyers hold the upper hand. Look for a run toward its 50-day moving average at $1,875.On the options trading front, calls won the popularity contest despite Friday's down day. Activity swelled to 116% of the average daily volume, with 184,251 total contracts traded. Calls added 58% to the day's take.The past month's trading range has killed implied volatility. At 23% or only the 5th percentile of its one-year range, premiums are incredibly cheap here. Bull call spreads are a no-brainer if you're banking on higher prices.As of this writing, Tyler Craig held bullish positions in SNAP. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Monday's Vital Data: Home Depot, Snap Inc and Amazon appeared first on InvestorPlace.
Shares of Chinese social blogging platform Weibo (NASDAQ:WB) have been in a secular downtrend ever since the trade war officially started in late January 2018. At the time, Weibo stock was a $130 stock that could do no wrong. By August 2019, Weibo stock was a $35 stock that could do no right.Source: testing / Shutterstock.com In other words, in a 19 month stretch from January 2018 to August 2019, WB stock lost more than 70% of its value and went from big-time winner to big-time loser.But, signs are starting to emerge that this multi-month decline in WB stock may be over. Specifically, over the past month, WB stock is up nearly 25% - marking one of its biggest one-month rallies over the past two years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIs recent strength in WB stock just noise? Or is it the start of a big, multi-month rebound? I think the latter - for three big reasons.First, the fundamentals are turning a corner, and imply that the stock is undervalued here and now. Second, the optics are steadily improving, and project to keep improving for the foreseeable future. Third, the technicals support the idea that WB stock tested and held a multi-year support level at $40, and is now ready to roar higher from here. * 7 Deeply Discounted Energy Stocks to Buy The takeaway? The turnaround in WB stock is here to stay, and buying WB stock on this rebound bid seems like the smart move. 1\. Improving FundamentalsFirst, and foremost, this turnaround in WB stock seems like the real deal because the fundamentals underlying WB stock are turning a corner, and imply that the stock is undervalued here and now.Underneath the hood, Weibo's numbers last quarter showed signs of gradual improvement.Monthly active user growth quarter-over-quarter was 4.5% - the biggest sequential user growth rate in four quarters - amid multiple initiatives from management to make the platform more immersive, social, and engaging.Further, constant currency revenue growth is expected to be 7.5% next quarter, up from this quarter's 7% growth rate and ending a multi-quarter streak of decelerating revenue growth which dates back two years.Perhaps most importantly, trailing 12-month adjusted EBITDA margins dropped just 14 basis points quarter-over-quarter, the slowest compression there in three quarters. The reason? Management is effectively cutting back on sales and marketing spend.Net net, then, the quarter had all the makings of a "turnaround quarter." User growth acceleration? Check. Revenue growth trend reversal? Check. Margins starting to stabilize? Check.Given that these positive developments are the result of management's recent actions, I think that these positive developments have a runway. Broadly, I think Weibo can and will return to double-digit revenue growth over the next several years, while margins will inch higher with improved scale, paving the path for $5 in EPS by fiscal 2025.Based on a market-average 16-forward multiple and 10% discount rate, that equates to a 2019 price target for WB stock of $50. 2\. Improving OpticsSecond, the turnaround in WB stock appears to have legs because the optics surrounding the stock are improving, and will continue to improve for the foreseeable future.There are three things here. First, China's economy, which has been rattled by the trade war for 20 months, is finally starting to stabilize, led by a surprising rebound in China's consumer economy. This stabilization should persist, and potentially even lead to a rebound. As the China economic environment does improve, it will create a rising which will lift all boats, Weibo stock included.Second, the U.S.-China trade war, which has coincided with a 70% drop in WB stock, is cooling off. The U.S. and China have agreed to resume trade talks in October. Given that neither side wants to escalate this trade war much further, I think that the October trade talks will actually lead to a meaningful resolution, or won't result in any further escalation at the very least.With the trade war headwind easing both now and for the foreseeable future, WB stock can and should move higher with most other China tech stocks.Third, Weibo is launching its own Instagram-like platform, dubbed Oasis. This new product has the potential to be really, really big. It's an image-focused, social lifestyle app that appears to be catered towards visual experience sharing. Apps like this in the U.S. - see Instagram, Snap (NYSE:SNAP), Tik Tok, etc - have done very well. Oasis could do just as well in China. The hype surrounding this new app will inevitably provide a multi-quarter lift to Weibo investor sentiment. 3\. The Technicals Support a ReversalThe third big reason to believe in the WB stock turnaround is that the technicals imply that this stock could be in the process of a huge reversal.See the attached chart. We've all seen charts like this before. They look like pyramids. The stock goes up super big in the first half of the chart, and then proceeds to give back all those gains in the second half of the chart. Click to EnlargeBut, every time you get this pyramid formation, you come to a point where the stock has retraced all of its gains in the given time frame. WB stock is at that point right now. By eclipsing $40 in August 2019, Weibo stock has given up all of its gains over the past few years and has completed this pyramid formation.What's next? If the stock doesn't hold the support level, more downside. If it does, a potential reversal.Weibo stock did hold this support level around $40. It has since shown significant signs of strength in rebounding to the mid-$40's. Thus, the technicals here seem to imply that the worst of the Weibo stock decline is over. Bottom Line on Weibo StockWeibo stock has been in a secular downtrend since early 2018. But, all major signs (improving fundamentals, favorable optics, and bullish technicals) imply that this downtrend is over.As such, over the next several months to quarters, I think WB stock can and will stage a meaningful recovery rally.As of this writing, Luke Lango did not a hold a position in any of the aforementioned securities, but may initiate a long position in WB within the next 72 hours. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 3 Big Reasons to Believe in the Weibo Stock Turnaround appeared first on InvestorPlace.
It was a modest day in the stock market Friday, with U.S. equities rising slightly despite a jobs report that came up short of expectations. Here are our top stock trades from Friday. Top Stock Trades for Tomorrow 1: Zoom VideoShares of Zoom Video (NASDAQ:ZM) started off higher on the day, but quickly reversed and trended lower throughout Friday's session. The move comes after the company reported earnings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDiscouraging as its breakdown is, it's even worse that ZM stock failed to hold the vital $90 level. This spot has been support for months now. * 7 Stocks to Buy In a Flat Market If bulls can't reverse ZM stock higher, the 20-day and 50-day moving average may act as resistance in the intermediate term, just as they did on Friday. On the downside, look to see if the 38.2% retracement near $80 can buoy the name. Top Stock Trades for Tomorrow 2: GoGoGoGo (NASDAQ:GOGO) stock has been robust over the past few days, rallying from $4 to almost $5 in just a few trading sessions. It's now approaching the latter -- $5 -- which has been vital over the past year.In the course of those few days, GOGO stock cleared the 20-day, 50-day and 200-day moving averages. If it can clear $5 and possible downtrend resistance, a move up to $6 surely isn't out of the question.If $5 is resistance, look to see if shares of GOGO find support at the 200-day moving average or the rising 20-day moving average -- whichever comes first.GOGO stock is starting to look attractive on a longer time frame, although it is still a speculative play. Top Stock Trades for Tomorrow 3: SnapSnap (NYSE:SNAP) is shaping up as a real beauty here. After hugging its 50-day moving average, shares blasted over downtrend resistance (blue line). We also saw an explosion of call options in the October $20 strikes.The MACD measure is turning in bulls' favor, while the RSI is nowhere near overbought (blue circles). Bottom line? This one could run and the risk/reward is very defined. Traders may consider using a close below the 50-day moving average as their stop-loss.If the markets cooperate, $18 shouldn't be out of the realm of possibilities. Top Stock Trades for Tomorrow 4: PinterestPinterest (NYSE:PINS) hasn't been looking all that healthy lately, falling from $35 last week to $30 at Friday's lows.Down five days in a row and right into support may entice some buyers, though. I know it enticed me -- although I've been wrong before and will be again! I like Pinterest for the long-term and added to my long-term position on Friday.Shares declined right into the 50-day moving average and the 38.2% retracement at $30.02. If this level fails as support, $29 will be on deck. If it does, look to see if PINS can reclaim $32 and get back above the 20-day moving average. Top Stock Trades for Tomorrow 5: MicrosoftMicrosoft (NASDAQ:MSFT) has been one of the more resilient mega-cap tech stocks out there and is still quietly commands the largest market cap among U.S. stocks. * 7 Triple Threat Growth Stocks to Buy for the Long Term Uptrend support (blue line) continues to squeeze MSFT into static resistance near $140. That describes an ascending triangle -- a bullish technical setup. A move over $140 could easily send MSFT to $141.20. Over it and shares are in breakout mode again. Below $136 and the setup will start to fall apart.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 5 Top Stock Trades for Monday: ZM, GOGO, SNAP, PINS, MSFT appeared first on InvestorPlace.
At present, social media giant Facebook (NASDAQ:FB) has two faces. On one side, the longer-term narrative for FB stock remains well intact -- in my view. I'll touch on a few key points below. However, the other side is that in the nearer term, the momentum in FB stock isn't quite impressive.Source: Ink Drop / Shutterstock.com On the Thursday session, the benchmark investment indices received a much-needed lift. Most notably, the S&P 500 index rallied over 3% from this week's lows. Additionally, several shares of companies in industries ranging from technology to energy saw significant gains. Within this positive environment, Facebook stock gained 2%. Further, against the closing low of August, FB shares are up currently up over 7%.But that's where the good news ends, at least in the immediate time frame.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCuriously, although FB stock has enjoyed strong sessions recently, its last swing up placed it underneath its 200-day moving average. Moreover, if you pull up a six-month chart, you can see that the $200 price level has imposed resistance. * 7 Stocks to Buy In a Flat Market Adding to the worries is that Facebook CEO Mark Zuckerberg sold off nearly $22 million of Facebook stock in the latter half of August. Now, people shouldn't read too much into the mere fact that an executive leaned out their company holdings. Perhaps Zuckerberg wanted to add a helipad for his estate.But in the present context, the sale is certainly a distraction. We already have an escalating U.S.-China trade war that doesn't seem likely to find a resolution soon. Plus, the conflict is hurting our economic stability. As such, Zuckerberg seems to be making a shrewd decision here. FB Stock Is Worth Its Coming DiscountOf course, I don't have a crystal ball. Zuckerberg may be overly cautious on his own equity holdings. And the technical resistance I referenced above may not follow its implications. Logically, a significant improvement in the trade war situation would help reassert the longer-term bullish case for Facebook stock.That said, I think a market correction is inevitable. We've been on a record run. Sometimes, we just need to empty out the extreme speculation to enjoy the next leg higher.Should FB stock drop lower -- and I'm eyeballing the $160 level, which has held as support this year -- I don't believe investors should panic. Instead, such a discount is worth jumping on from a strategic perspective.First, I don't believe that recent financial concerns, such as decreasing margins, are necessarily a bad thing. When FB stock was a young, scrappy growth play, this condition may have been a bigger issue. However, Facebook has already utterly dominated social media. Even with its 2.4 billion monthly active users, it continues to add users. Of course, this growth rate has declined because the company is running out of people to convert.Therefore, management needs to find new avenues to make the organization consistently relevant. For example, its research into machine innovation is full of potential. Also, its unprecedented human data base represents an indelible asset.If you're paying attention to developing technology trends, you know that deep learning is a massive market. But to compete there isn't cheap. Thus, research and development costs have skyrocketed over the past few years.Some analysts have taken that as a reason to dump Facebook stock because the company is disappointing on current metrics. But with some patience, I believe management's efforts into tomorrow's tech will pay off handsomely. Demographics for Facebook Stock Is a "Can't Miss" OpportunityAnother reason why investors should strongly consider buying robust dips in FB stock is demographics. One of my biggest criticisms about rival Snap (NYSE:SNAP) is that it caters too deeply toward young users. Certainly, I understand the appeal from an advertiser's point-of-view. But what happens when those users grow up and need utility from their social media platforms?That's where Facebook, and by logical deduction, Facebook stock comes in. With this platform, you have access to a wide range of uses, ranging from personal pursuits to professional endeavors. It's a great way to evangelize a meaningful social event, or to promote your small business. And if you wish to delve into the frivolities of social media, Facebook's Instagram acquisition facilitates that desire.Thus, I'm not particularly surprised that the idea of Facebook buying out Yelp (NASDAQ:YELP) has reemerged. Yelp is in many ways like Facebook. Specifically, it's a peer-reviewed verification platform: its power comes from the collective social network organically cooperating toward a shared end goal. * 7 Triple Threat Growth Stocks to Buy for the Long Term Should Facebook buy out Yelp, I think it would be a positive for FB stock, even though it would temporarily crimp the financials. As a dominant player, all I can ask is that they maintain the hunger to improve. Facebook is doing that, and so much more.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Mark Zuckerberg Sells Facebook Stock, But Donat Panic Yet appeared first on InvestorPlace.
To be honest, Facebook (NASDAQ:FB) stock really only has one major competitor. When looking at the various social media stocks, most of them really have their own niches. Consumers use microblogging Twitter (NASDAQ:TWTR) as a news aggregation site and to voice their own opinions. Pinterest (NASDAQ:PINS) is all about idea generation and shopping. People use Facebook -- and its photo-sharing app, Instagram -- to connect to their friends and family.The problem is, that's exactly what Snap (NYSE:SNAP) does.The rivalry between FB and SNAP has grown fierce in recent years. And both firms have lost and regained the edge when it comes to user adoption and popularity. However, Facebook may finally be getting the upper hand, and it could be poised to kill off Snapchat once and for all.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThanks to a new app that's coming to Instagram, Facebook is directly taking it to SNAP's bread and butter-: messaging to a small, select group of individuals. By removing its one and only real rival , FB could boost its future advertising revenues and FB stock. SNAP Is a Threat to FacebookSNAP has long been a "messaging platform." Its main attraction is enabling the use of pictures and video as a private vehicle of communication between users. And increasingly, that's become the "go-to" way for younger people to communicate with each other. * 7 Industrial Stocks to Buy for a Strong U.S. Economy Many members of Generation Z actually don't have Facebook profiles, while recent reports show that the average Snapchat user spends a ton of time inside the app. Consequently, many marketers are willing to pay to advertise on Snapchat, boosting SNAP stock in the process.No wonder SNAP CEO Evan Spiegel references "communication" prominently in the firm's conference calls and press releases.For Zuckerberg and FB stock, this is a big deal. Facebook has a huge cache of users; 500 million people use Instagram every day, versus about 190 million for Snap. But those users are meaningless if the next generation decides not to become Facebook or Instagram users. Remember MySpace? FB needs to keep users growing and interacting on its various properties to keep the ad revenues growing.To that end, Facebook has taken SNAP head-on, looking to hit the upstart right in the money maker. Facebook unveiled its own "Stories" on its Instagram app three years ago. That move did seem to work. SNAP's user growth has fallen off a cliff since the launch of Stories on Instagream and FB's engagement has kept rising. That is, until recently.During the first quarter of 2019, SNAP managed to add 4 million users. It followed that up with a big 13 million new users in Q2. Driving that growth have been new messaging functions inside the updated version of its key app. The average Snapchat user sends about 34 chat messages per day and was 64% more likely to send a snap to a friend than post to Stories. So, Facebook may have solved its first problem with Snap,but a new issue is hurting FB and FB stock. . Facebook Dons Some New ThreadsThis time, the damage from Facebook's efforts may be enough to finally win the war. After ceasing work on a new messing app called Direct, FB is now developing a new app called Threads, which is located inside Instagram. According to a new report by The Verge, the messaging app will allow users to communicate using traditional text as well as video and photos. The kicker is that Threads will also share other information like location and direction/velocity of movement. Threads is designed to work with Instagram users' "close friends" lists.This is important as those are the features that SNAP fans use the most. As I said before, these features are exactly what's drawing younger users towards Snap's platform.By implementing automated sharing and integrating messaging into Instagram, Facebook could once again regain an edge among younger people. FB has noted that posts and stories by "close friends" spark many more interactions than general posts. And the added benefit of being able to comb through chat/location data could prove to be useful to advertisers. Further, if FB can pull users from SNAP and get them to stay on Instagram, Facebook stock will be boosted even more. FB Stock Has PotentialWhile there are no plans to launch Threads just yet, initial tests look good. A full launch could be around the corner. That would be wonderful for FB stock. Threads has the potential to heighten engagement, create more likes and ultimately, provide plenty of user data to advertisers. That should help raise FB's overall revenues, providing FB stock with a powerful catalyst.Lately, the firm has seen its pace of revenue growth slow as engagements on its main platform has shrunk and Snap has started to eat its lunch.For investors, the new app has plenty of potential. If it launches, it could doom Snap and SNAP stock, allowing Facebook to take back its crown.At the time of writing, Aaron Levitt did not have a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Facebook Stock Likely to Get Boost From FB's Imitation of SNAP appeared first on InvestorPlace.
CEO of Snap Inc (30-Year Financial, Insider Trades) Evan Spiegel (insider trades) sold 2,102,245 shares of SNAP on 09/04/2019 at an average price of $15.86 a share. Continue reading...
The influencer industry is thriving thanks to platforms like YouTube and Instagram, and it's changing consumer shopping behaviors rapidly. Co-founder and President of LIKEtoKNOW.it, Amber Venz Box, joins The Final Round to discuss.