|Bid||18.63 x 4000|
|Ask||18.64 x 1300|
|Day's Range||18.27 - 18.66|
|52 Week Range||6.20 - 19.75|
|Beta (5Y Monthly)||1.10|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||19.06|
Snap (NYSE: SNAP) stock has been all over the map since its 2017 IPO. After a horrendous start to its life as a public company, Snapchat stock has skyrocketed nearly 200% in the past year.Source: Ink Drop / Shutterstock.com Snap's recent earnings reports suggest the company is finally on the right track when it comes to consistently growing and monetizing its users. But with fourth-quarter earnings right around the corner, investors should consider taking some of their big gains off the table in the near-term just to be safe. Snap Is Not a LeaderSnap's nearly 200% one-year gain heading into its Q4 earnings, due to be reported on Feb. 4, is the type of rally more likely to be delivered by a company that is dominating its industry and swimming in cash. There's no question Snap has made tremendous strides in the past year, but it's far from the leader of social media.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs of October, Snap had about 314 million active users. Facebook's (NASDAQ: FB) flagship website is the clear social media leader with 2.4 billion users. YouTube has 2 billion users, Instagram has 1 billion users, Reddit has 330 million, and Twitter (NYSE: TWTR) has 330 million. Even relative newcomer TikTok has 500 million users.But Facebook isn't just beating Snap in the user department. It's also beating Snap in monetizing its users. In its most recent reported quarter, Facebook's average revenue per user (ARPU) was $7.26. That number is ahead of Twitter's $5.68 and Snap 's $2.12. Not only is Snap well behind the competition in ARPU, but its ARPU is only up about 5 cents from the fourth quarter of 2018. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy At one time, Snap was considered the best way for advertisers to reach the coveted demographic of consumers under the age of 30. However, Instagram now dominates that demographic, and TikTok is growing the fastest in the category. Opportunities AheadDespite Snap's weaknesses, Bank of America analyst Justin Post says there are plenty of things to love about the company. The biggest change in Snap from a year ago is that its user growth has accelerated.In Q3, its daily active user growth jumped to 12.9% from around 4.5% in the same period of 2018.Post says that, given the combination of its user growth and its opportunities to close the monetization gap with Facebook and others, Snap stock can climb further."Snap still has a big opportunity ahead with a growing Millennial/Gen Z user base that spends 30+ minutes per day on the app, much more time than social peers," Post says.Post estimates that Snap's revenue can rise by 40% in 2020, with its ARPU increasing 26%."Snap likely has a small fraction (of the) social advertisers on Facebook, and we think closing this difference can close the sizable advertising [cost per thousand impressions] gap to peers," Post says.By adding advertisers and implementing new content strategies such as Discover content and Dynamic Products ads, Snap should be able to make its business much more efficient in 2020.Bank of America has a "buy" rating and a $22 price target on Snap stock. Are the Positive Catalysts Already Priced In?The million-dollar question for investors is what is already priced into Snapchat stock after its huge rally.The average analyst estimate is calling for Snap to roughly break even on EPS in 2020 after reporting an 18 cent per share loss in 2019. Even looking ahead to 2021, analysts, on average, are estimating EPS of only 26 cents. That means Snap stock is currently trading at 73.4 times the average 2021 earnings estimate, a steep valuation to say the least.Unfortunately, price-sales numbers don't offer much comfort either. Snap currently trades at about 17.2 times its sales, well above the levels of Facebook (9.4), Twitter (7.6) and even Pinterest (NYSE: PINS) (11.6). Based on Bank of America's 2020 revenue estimate of $2.42 billion, Snap's forward P/S ratio is around 11, still on the high end of its peer group. How to Play Snapchat StockIt's difficult to recommend buying a stock that is up nearly 200% in the last year. Unfortunately, Snap stock is more likely to fall than rise in the near-term. At the very least, I would take some profits off the table ahead of the company's Q4 earnings.However, Snap's shares are now trading at just a 12% premium to their IPO price nearly three years after the company went public. It's perfectly reasonable at this point to think the Snap bull case may have simply been early, rather than wrong.Investors who are bullish on Snap's long-term outlook should feel much better about owning the stock today than they did following the IPO in 2017. I just believe that, after Snap's big rally, investors will get a better entry point in the stock some time in the coming months.As of this writing, Wayne Duggan held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post The Rally of Snap Stock Still Has Legs appeared first on InvestorPlace.
One of the hottest initial public offerings of 2019, Pinterest (NYSE:PINS), started out making good on the hype. After going vertical for several sessions after its debut, Pinterest stock subsequently became choppy, and a revenue miss combined with disappointing guidance during its third-quarter 2019 conference call quickly sank shares. But does that depression present an opportunity for investors?Source: Nopparat Khokthong / Shutterstock.com Personally, I've been skeptical about this stock. Although the underlying company is very relevant with the youth market, social media is a very crowded sector. With Facebook (NASDAQ:FB), Twitter (NYSE:TWTR), Snap (NYSE:SNAP) and others competing for attention, it's hard to get too excited about yet another social media company.On the flip side, this industry is notorious for producing slow starts. Most recently, we only need to look at Snap's IPO drama, which saw the company stumble out of the gate. But since late 2018, SNAP has been one of the top-performing stocks. It seems like Wall Street just needed some time to get comfortable with the underlying business proposition.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, should you gamble on Pinterest stock, especially given it still trades at a discount relative to 2019 highs? Here are two pros and two cons to consider. Pro: Pinterest Stock Benefits from Youthful PopularityWhen it comes to social media firms, eyeballs are everything. However, not all traffic sources have the same level of desirability. Just like traditional media companies target the 18 to 49 demographic, social media companies have similar attitudes. The difference here is that Pinterest has gained serious traction with the young demo. * The 10 Best Value Stocks to Own in 2020 According to data from the Pew Research Center, a respectable 34% of U.S. adults ages 18 to 29 use Pinterest. Additionally, 35% of those ages 30 to 49 use the platform. That beats out rivals Twitter (26%) and Snapchat (25%).Critically, the usage of Pinterest stays nearly consistent between young adults and "young-ish" adults. This factor separates the platform from something like Snapchat, which is clearly geared toward youthful frivolities. As Snapchat users grow up, they quickly abandon the app.This also tells me that people use the platform for reasons unrelated to age-defined behaviors. In other words, you can grow with Pinterest stock, which you can't always say for other social-media related investments. Pro: It's Attractive to AdvertisersAnother interesting factor with positive implications for the stock is the underlying platform's attractiveness to educated users. In fact, between Pinterest, Twitter and Snap, the former features the most educated user base.Again, data from Pew indicates that 32% of Pinterest users have some college education, while 38% have college degrees. In both categories, the company beats its primary rivals by a conspicuous margin.Combined with the consistent use across age groups, Pinterest also has a relatively wealthy user base. According to Pew, 34% of U.S. adult Pinterest users make between $50,000 to $74,999 a year, and 39% make $75,000 or more. Again, in both of these income brackets, PINS beats out Twitter and Snapchat.As a result, the company is very appealing to advertisers. Not only is the app popular among key demographics, those demographics have the money to plunk down on desirable goods. Con: Pinterest Skews Heavily FemaleSpeaking as a man, there are many instances where a heavily female-skewed audience is desirable. But with Pinterest stock, such gender imbalances represent a liability. Approximately 70% of the app's users are women, which is a huge problem.As I stated above, social media is all about the eyeballs. And while some eyeballs are more desirable than others, few companies can afford to be deliberately selective about their traffic. Now, the company has never set out to be a female-oriented platform. But without greater male participation, the underlying company's ultimate attractiveness to advertisers is necessarily limited.To be fair, 50% of 2018's new sign-ups on the platform were men. But even with more men joining the platform, social media forecasts indicate that the gender split won't change appreciably from where it's at today. Thus, while advertisers appreciate the income level of Pinterest users, the skewed user base is a headwind. Con: Where's the Beef?Not only does Pinterest stock suffer from imbalanced gender ratios, I don't care for how the app is commonly used.In the U.S. market, the platform's most popular category is art, art supplies and hobbies. As someone who dabbles in and supports the arts, I have no problem with this per se. However, this category just doesn't bring in the big bucks. If you don't believe me, consider the troubles some arts and crafts specialists have suffered in the past year.Given that the company's user base leans heavily female, I'm not surprised that this category ranks tops on the platform. But what about the men who use Pinterest?Not surprisingly, the technology category is popular among the guys, but so are food and drinks. This leads me to believe that Pinterest lacks traction with high-dollar industries. And that's another concern as it relates to attracting advertisers. The Bottom Line on PINSAt its higher valuation last year, Pinterest stock was an easy sell. But at the present relative discount, I can see why many people are interested in buying. At these prices, I'm not against taking a speculative bet. However, the company's longer-term headwinds leave room for pause.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 * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post The Pros and Cons of Buying Pinterest Stock appeared first on InvestorPlace.
Jim Cramer expressed optimism about Snap Inc.'s (NYSE: SNAP) stock value on Thursday. The company reported a 13% increase in daily active users year-on-year, even as it faces increased competition from Facebook Inc. (NASDAQ: FB) and subsidiary Instagram along with new entrant video sharing platform TikTok, and other social media platforms.
The key to picking stocks is knowing what works, Jim Cramer told viewers Thursday night on Mad Money. In his experience, what works are turnaround stories such as Snap Inc. , the parent of Snapchat app, that had been written off and left for dead last year, before nearly tripling from its lows. In the daily bar chart of SNAP, below, we can see a constructive picture.
NBC Olympics and Snap Inc. are once again partnering to put coverage of the Games in the hands of millennials and Generation Z. The division of NBC Sports Group, itself part of Comcast Corp. (NASDAQ: CMCSA), will create four daily Snapchat shows during the Tokyo Olympics. The deal marks the third Olympics collaboration between the two companies following Rio 2016 and PyeongChang 2018. NBC plans to release more than 70 episodes for the Snap (NYSE: SNAP) app leading up to and during the event — more than triple the number compared to the 2018 Games — including for the first time two daily highlights programs that will be updated "in near real-time throughout the day." In addition, two unscripted Snapchat shows will release two new episodes per day: "Chasing Gold," which debuted during PyeongChang, following the journeys of Team USA athletes, and a new daily recap of the day's most memorable moments.
Snapchat and NBC Olympics are again teaming up to produce customized Olympics content for users in the U.S. -- this time, for the 2020 Tokyo Olympics this summer. The companies had previously worked together during the Rio 2016 and PyeongChang 2018 Olympics. The PyeongChang Olympic Winter Games in 2018 reached over 40 million U.S. users, up 25% from the 2016 Rio Olympics.
(Bloomberg) -- Chinese internet giant ByteDance Inc. is seeking a new chief executive officer for its TikTok business, a hugely popular video app that American politicians have targeted as a potential security threat.The company has interviewed candidates in recent months for the CEO role, which would be based in the U.S., according to people familiar with the matter, who asked not to be named because the search is private. In one potential scenario, the new CEO would oversee TikTok’s non-technical functions, including advertising and operations, while current TikTok chief Alex Zhu would continue to manage the majority of product and engineering out of China, one person said. The hiring process is ongoing and the envisioned role could still change depending on who is selected, the people added.Zhu, who co-founded a predecessor to TikTok called Musical.ly, took over the business last year, though ByteDance also has a Chinese version of TikTok called Douyin, which is run by a different management team. The eventual corporate structure involving Zhu and the new CEO is still unclear, the people said, and Bytedance has hired executive search firm Heidrick & Struggles to help lead the process.A spokesman for TikTok declined to comment. Heidrick & Struggles didn’t respond to a request for comment.The new hire won’t affect the role of Vanessa Pappas, who currently oversees TikTok’s U.S. operations from Los Angeles, one person said. In a blog post Wednesday, Pappas wrote that TikTok has opened a new Culver City office with plans to “scale our local operations,” and now has more than 400 U.S. employees.“While we are a global company, having a permanent office in LA speaks to our commitment to the U.S. market and deepens our bonds with the city, and the talent and companies, that call it home,” she wrote.Beijing-based ByteDance, led by CEO Yiming Zhang, has built TikTok and Douyin into some of the world’s most popular apps with more than a billion users between them who share short video clips of things like lip-syncing and dance videos. That has made ByteDance the most valuable tech startup in the world, challenging the dominance of U.S. companies like Facebook Inc. and Snap Inc.The app is growing fast and drawing a lot of attention from advertisers and competitors. Snap CEO Evan Spiegel said over the weekend he thought TikTok alone could grow to be larger than Instagram, which has more than 1 billion active users and has been the go-to social media destination for young people in the U.S.With rising tensions between China and the U.S., however, American politicians have warned the app represents a national-security threat. The Committee on Foreign Investment in the U.S., better known as CFIUS, has begun a review of ByteDance’s 2017 purchase of the business that became TikTok, Bloomberg News reported in November.ByteDance is weighing a range of options to address those concerns, from an aggressive legal defense to the sale of a stake in TikTok, Bloomberg News reported in December. A representative for the company said at the time there have been no discussions about any partial or full sale of TikTok.“I remain deeply concerned that any platform or application that has Chinese ownership or direct links to China, such as TikTok, can be used as a tool by the Chinese Communist Party to extend its authoritarian censorship of information outside China’s borders and amass data on millions of unsuspecting users,” U.S. Senator Marco Rubio, a Republican from Florida, wrote in a letter to the Treasury Department, which chairs CFIUS.The hiring of a new U.S. CEO may be aimed at resolving those security concerns, the people said. It’s possible ByteDance is searching for a candidate who could help address questions in Washington or for someone with the skills to lead an independent business if it faces pressure to separate TikTok from the Chinese parent. It’s unclear how much autonomy this new CEO would have. A number of successful tech companies are led by CEOs who also have influence over product direction, including Facebook, Snap and Twitter.ByteDance would prefer to maintain full control of the business if possible, given its soaring popularity and profit potential, Bloomberg News reported earlier. It may argue that TikTok presents no security threat or that the U.S. has no legal standing over the business.TikTok has said it strives to create a safe and positive online environment. “We are not influenced by any foreign government, including the Chinese government; TikTok does not operate in China, nor do we have any intention of doing so in the future,” the company said in October.(Updates with detail on search company in the third paragraph.)\--With assistance from Zheping Huang.To contact the reporters on this story: Kurt Wagner in San Francisco at email@example.com;Sarah Frier in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Jillian Ward, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The global backlash against Big Tech is not all bad news for Silicon Valley. For some, the techlash is proving to be an irresistibly effective marketing ploy. Earlier this week, news website Axios reported that Snap founder and chief executive Evan Spiegel had appeared on stage in Germany and taken a swipe at Facebook (which has plundered Snapchat features in the past) by claiming that his social media platform had avoided the criticisms levelled at Facebook because it adopted the right division between private and public communication.
At the end of the third quarter, Pinterest (NYSE:PINS) had 322 million monthly active users (MAUs). That fact, along with the market value assigned PINS stock, sets up a rather interesting comparison.Source: Nopparat Khokthong / Shutterstock.com Pinterest's enterprise value (EV) -- its market capitalization less cash -- is $11.3 billion. Snap (NYSE:SNAP) announced it had 210 million DAUs (daily active users) for its 3Q earnings, which means its monthly user base is likely much higher. Furthermore, its EV is more than twice as high.Twitter (NYSE:TWTR) finished 2018 with 321 million MAUs, at which point it stopped disclosing that figure. It closed the 3Q 2019 with 145 million DAUs, and its enterprise value is right around $23 billion -- almost exactly double that of Pinterest.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom a per-user standpoint, PINS stock looks noticeably undervalued. The question at this point, though, is if it should be. PINS Stock RalliesTrading in Pinterest stock this week suggests investors are paying closer attention to user-based valuation. A report on Tuesday from eMarketer showed that Pinterest actually has more U.S. users than Snapchat in 2019. In the three ensuing sessions, PINS stock gained 17%. * The Top 5 Dow Jones Stocks to Buy for 2020 Again, the optimism makes some sense -- particularly with PINS stock struggling in recent weeks. Shares plunged after the company's third-quarter report in November showed slowing revenue growth. But the report was hardly terrible: the top line still grew 47% year-over-year in the quarter.Also, with PINS stock below $20 after fading further following the post-earnings selloff, valuation looked reasonable -- at least by social media stock standards. Valuation remains reasonable, with EV/2019 revenue just above 10x, and the 2020 multiple barely above 7x. On a top-line basis, too, PINS trades at a discount to TWTR and SNAP.In fact, it trades at only a modest premium to Facebook (NASDAQ:FB), whose revenue growth next year is expected to be around 21% versus 35% for Pinterest. It might seem crazy -- or the sign of a bubble in the market -- to argue that PINS stock is cheap at 7x revenue, with adjusted earnings per share (EPS) next year likely to be barely positive. But, on a relative basis, it is. The Case for Pinterest StockAnd where that gets particularly interesting is looking at how Pinterest monetizes those users. Simply put, Pinterest isn't doing a very good job -- yet. Its global ARPU (average revenue per user) in the third quarter was just $0.90. The figure at Snap (albeit on a daily user basis, which inflates the number somewhat in comparison) was $2.12. Twitter (again, based on daily numbers) was near $6, and Facebook (using MAUs) above $7 -- about eight times that of Pinterest.Somewhat counterintuitively, this is good news for PINS stock, as it means there's plenty of room for improvement. That's most obviously true overseas, as ARPU outside the U.S. in the third quarter was just 13 cents. On the other hand, SNAP stock has rallied over the past 13 months thanks to optimism toward its own potential for better monetization, especially overseas. Pinterest has a similar opportunity and a lower stock price, at least relative to its users and revenue.The eMarketer report seems to have reminded investors of that fact, and so the rally this week makes some sense. The RisksThat said, there are three key risks here. The first is that the other stocks in the social media space may well be overvalued. Pinterest stock could outperform SNAP going forward, but that alone doesn't mean PINS will rally.The second is that competition is going to be intense, and Pinterest is later to the game. Amazon (NASDAQ:AMZN) quickly is becoming a force in online advertising, and threatening the duopoly of Facebook and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) in the process. Pinterest is a later entrant into the space, which may make it more difficult to challenge those giants.Finally, it's fair to wonder at least a little bit, if execution needs to improve. The international ARPU figures in particular are quite soft -- and can't be explained solely by different demographics and buyer behaviors. All social media companies have much higher monetization domestically, but none have the huge spread that Pinterest does; ARPU in Q3 was $2.90 in the U.S., 22x the overseas figure.The opportunity for improvement is bullish in the sense that ARPU can drive overall revenue growth. However, it's bearish in the sense that the opportunity is so large. ARPU rose just 14% YOY in Q3. A 26% rise in the U.S. is solid, but with the domestic user base up just 8% YOY, there might not be enough in that market to drive the growth still priced into the stock.Meanwhile, overseas markets, again, are much smaller: even Facebook generated just $3.24 per user in Asia-Pacific in Q3, and $2.24 in its "Rest of World" segment (which excludes the U.S., Canada, Europe, and Asia Pacific). That's a big reason why PINS stock slumped so much after the Q3 report, despite seemingly impressive consolidated results. A Key Earnings Report for PINS StockRecent trading and the reaction to Q3 suggest that the fourth-quarter report, due on Feb. 6, is exceedingly important. Investor enthusiasm has built just this week. Valuation might be cheap on a relative basis, but PINS stock still trades at nearly 7 times 2020 revenue and over 300 time adjusted EPS.Pinterest doesn't necessarily have to prove its ability to better monetize users in a single quarter, but it needs to inspire confidence on that front. This increasingly is a story of opportunity versus execution, and Pinterest needs to make sure investors keep focusing on the former -- and not the latter.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post The Key Questions for Pinterest Stock Before February Earnings appeared first on InvestorPlace.
Snap (NYSE:SNAP) was one of the biggest winners in social media in 2019, with its shares nearly tripling. After a dreadful downturn following its IPO, Snap enjoyed the same sort of turnaround that other social media networks did. Don't rush to conclude that Snap will eventually have the same success that, say, Facebook (NASDAQ:FB) did, however.Source: Ink Drop / Shutterstock.com Snap still faces a ton of challenges, including inconsistent user growth, a lack of profitability and relatively low revenue generation per user. At $6 per share, investors had largely given up on Snap's story. Up here at $19, the risk and reward are more fairly balanced.On top of that, CEO Evan Spiegel is selling large quantities of stock, including a $50 million sale this week. Should you join him in ringing the register?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap's Bull CaseGiven the big run-up in Snap shares last year, it's worth asking what folks still see in the stock. At 17x sales and still losing money on an earnings basis, people aren't buying Snap stock for its strong profitability or cash flows.Rather, there's the excitement that Snap seems to be turning the corner. The company has done a better job of monetizing users. And, bulls argue, potential weakness at the dominant ad companies such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Facebook give Snap an opportunity. For years, investors have been speculating on which platform would become the solid No. 3 player in the industry. Twitter (NYSE:TWTR) has seemingly squandered its chance to seize that position, and it's left the door open for Snap. So far, Evan Spiegel and his team have been executing on that opportunity. AI FactoryEarlier this month, Snap announced that it is buying AI Factory, a firm based out of Ukraine that focuses on video-editing technologies. Specifically, AI Factory helped with the creation of Snap's new Cameos feature that allows users to turn their selfies into animated short videos. * 7 Small-Cap Stocks That Are Not Worth a Second Glance Snap has enjoyed tremendous success pioneering photo lenses and filters, and is betting that giving this sort of creativity to short videos will help drive more user engagement and create additional types of advertising opportunities. Other players such as TikTok are reportedly working to create videos from user selfies, so Snap is also taking a decisive step to stay ahead of the curve there. Questions About AI FactoryOne thing worth considering is that this AI Factory purchase may affect Snap in another way. $166 million is a large enough price tag that Snap will probably report adjusted earnings numbers that take this merger into account. As such, particularly if Snap reports softer-than-expected earnings, it may be able to divert attention from the numbers by saying that the figures aren't comparable due to the acquisition.This could help Snap stock in the short run, particularly if earnings come in soft. Over the long term, however, make sure to double check whether things such as reported EBITDA and cash flow figures are as good as they may seem once you account for accounting adjustments from the merger.There's also a related parties concern to consider with AI Factory. AI Factory was founded by Victor Shaburov. Shaburov and Snap already had history together. According to TechCrunch, Snap acquired Shaburov's previous company, Looksery in 2015, and Shaburov became a director of engineering at Snap. Then, Shaburov left Snap to co-found AI Factory in 2018. Less than two years later, Snap had to pony up $166 million to acquire Shaburov's latest company. This seems like an expensive way to deal with a key employee and innovator. The Bottom Line on Snapchat StockRecently, InvestorPlace's Thomas Niel concluded that Snap's stock is already priced for perfection, and wrote:"So what's the call? Consider a buy if the SNAP stock price dips. At current prices, there's not enough upside to compensate for underlying risks."I agree with Niel's take. Snap has the ability to power up to $20 and potentially past that if ad spending continues to grow at a decent clip. But don't count on 2020 to be anything like 2019 for Snap stock -- it will be a much tougher climb this year. And with shares already having tripled off the lows, it wouldn't take much for traders to want to start locking in profits on Snap if anything goes wrong.I know it's tempting to want to grab speculative stocks like this. The market is on fire, and Snap could take off like so many other hot names. But I'd urge you to be cautious. There will almost certainly be a better moment to buy Snap and other low-profitability tech companies once a correction hits.At the time of this writing, Ian Bezek owned FB stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Wait for a Correction to Buy Snap Stock appeared first on InvestorPlace.
Snap is the IBD Stock Of The Day, as the social media company and owner of Snapchat broke out to a one-year high and moved into a buy zone. Snap also was upgraded to buy.
Business momentum is here to stay for Snapchat parent Snap, but 2020 will bring headwinds for Twitter, analysts say.
Although shares of Snap Inc (NYSE: SNAP ) have appreciated by 21% over the past month, the company’s prospects for revenue growth and margin expansion appear underappreciated, according to UBS. The Snap ...
Snap stock has recovered sharply from a steep decline that began the day after its initial public offering in 2017. A series of product upgrades and features is driving new growth.
Shares of Pinterest Inc. have had a strong week, rising 17% over the past three trading sessions, and the rally looks poised to continue after an upgrade to overweight from equal weight by Wells Fargo analyst Brian Fitzgerald. The stock is up more than 4% in premarket trading Friday. "Shares have materially underperformed the broader market since the company's April 2019 IPO, despite our view that the company's fundamentals remain on solid footing, as Pinterest has delivered generally solid results, handily exceeding pre-IPO targets with healthy audience and engagement growth, strong revenue growth and solid progress toward profitability," he wrote. He sees several catalysts down the road, including greater engagement stemming from more video on the platform, improvements in monetization on the heels of ad-tech upgrades, and better international monetization as the company invests in an overseas sales force. Fitzgerald said that Pinterest's average revenue per user in the U.S. was 22.5 times what it was internationally in the third quarter, compared to 3.6 times for Snap Inc. , 4.6 times for Twitter Inc. , and 6.9 times for Facebook Inc. . He upped his price target to $30 from $28. Pinterest shares have risen 26% over the past month, but they're off 12% over three months. The S&P 500 has climbed 4% over one month and 11% over three.
Snap Inc. shares rose 3% in premarket trade Friday, after UBS upgraded the stock to buy from neutral and said it expects positive business momentum to continue into 2020 and beyond. Analysts led by Eric Sheridan raised their stock price target to $24 from $16, equal to 32% upside from its current price. "While the stock is up 21% over the past month and certainly not a contrarian idea to upgrade at these levels, we see a renewed mgmt team focused on driving a mix of user growth (especially the Android refresh) and ad monetization that could produce multi-year revenue growth even above our newly raised forecasts," the positive picture of U.S. internet users, suggesting strong growth in usage and ad conversion, said the note. At the same time, industry data is showing solid momentum for ad budget allocation and potential tailwinds for pricing on Snap's snapchat platform over the medium term. Snap shares have gained 128% in the last 12 months, while the S&P 500 has gained 26%.
Pinterest has surpassed Snapchat in popularity among U.S. users, according to a new eMarketer report. Yahoo Finance’s Dan Roberts joins Seana Smith on The Ticker to discuss.