16.73 -0.12 (-0.71%)
Pre-Market: 5:56AM EDT
|Bid||16.80 x 1100|
|Ask||16.90 x 4000|
|Day's Range||15.98 - 16.90|
|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||16.57|
Interested in IPO stocks like Uber, Beyond Meat, Zscaler and Peloton? Learn lessons from Facebook, Alibaba and Snap before investing in IPO stocks.
Is Twitter stock a buy now? Check out the stock's fundamental and technical metrics to figure out if the stock should be on your watchlist.
Shares of Snapchat parent (SNAP) were climbing early Tuesday as Wall Street played a bit more catch-up with the social-media company’s hot stock. Snap stock (ticker: SNAP), up 186% in 2019 through Monday’s close, was up 5% to $16.56 in morning trading as Susquehanna Financial Group analyst Shyam Patil upgraded the shares—but only to Neutral from Negative, raising his price target by $6 to $18, a bit above FactSet’s average closer to $17. Patil had slapped a negative rating on the shares in early 2018 and maintained that, even while boosting his price target as the shares have climbed.
A lot of analysts got it wrong about Snap (NYSE:SNAP) stock. In late 2018, Snapchat stock was in a tailspin. The prevailing sentiment was that the tech startup was about to be another cautionary tale regarding initial public offerings. What happened then has been nothing short of amazing. SNAP stock has grown nearly 200% in 2019, largely fueled by increasing quarterly revenue.Source: dennizn / Shutterstock.com Now, nearly a year later, the SNAP stock price is once again at a turning point. Only now, instead of wondering if Snap is a falling knife, investors wonder if shares have room to grow.But for Snap to see their stock price grow, it will need to generate more advertising revenue. With a growing user base among a desirable demographic, that sounds easy enough. However, this demographic is anything but traditional when it comes to advertising. That's a reason I think it's best to proceed with caution.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Snap Has a Growing User BaseThe bullish case for Snap stock points to 13 million daily active users. That's how many active users the company added in the second quarter. This growth gave analysts a lift after a disappointing first quarter that saw Snap add just four million users. * 7 Tech Stocks You Should Avoid Now Snap's monthly user base is just above 500 million. That's more than Twitter (NYSE:TWTR) (335 million users) but still far fewer than Facebook (NASDAQ:FB) (2.4 billion). Snap has also flown under the radar while companies like Facebook and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) draw increased regulatory scrutiny.Snap's CEO Evan Spiegel commented, "Completing these transitions has established a strong foundation for growing our community, increasing engagement and growing advertising demand." Growing Ad Demand Is Easier Said than DoneSnap has been built for, and targeted to millennials and Generation Z. These generations got social media education in middle school.The attraction of Snapchat was the idea of being able to self-produce shareable content that only stays online for a short period of time. Many reject Facebook because their content stays online unless the user deletes it.Despite interacting with multiple social media channels in one day, these generations are intensely concerned about their privacy. Providing what they see as personal information is one reason why email advertising is a non-starter with this demographic. Traditional Advertising Won't WorkAs it relates to ads, these generations want to be entertained, not sold. These target audiences will not engage passively with "traditional" advertising.A recent report titled The Everything Guide to Generation Z by Vision Critical, in partnership with research firm MARU/VCR&C, provides insights into the attitudes, behaviors and value of this generation.One of the key takeaways as it relates to Snap is that 69% of Generation Z finds ads disruptive. While the word "disruptive" can be thrown around by marketers in a good way (i.e., it changes the conventional way of thinking, forcing consumers to pay attention) that is not the context here. This generation, more so than even millennials, want ads to meet them where they are in a very organic manner.Yet, Erin Gade of Yes Lifestyle Marketing reported that one in five Generation Z consumers found Snapchat influential in their purchase decision. This requires a cross-channel model that is far different from banner ads and pop-up videos. In fact, in many cases the ads aren't ads at all.As someone who's worked in marketing agencies, I can confirm that many marketers are not open to new approaches. They want traditional "push" advertising and pre-roll messages because they're measurable. But they frequently don't look at or understand the metrics that matter. It's a soft-sell approach. The payoff is more intrinsic and less measurable. Snap Needs Ad Revenue to Reach ProfitabilityThe fact that Snap is not yet profitable is not a big deal for investors. The company is not expected to be profitable until 2023. However, that revenue growth is largely going to be dependent on the company's ability to monetize their advertising. InvestorPlace contributor Vince Martin wrote in August that Snap would require at least $1 billion in additional revenue to support its current valuation. The stock is already down about 10% from its recent highs. I expect that some investors will look to engage in profit taking as the year comes to an end.The argument for Snap stock is that their target audience is devoted to technology and loyally uses the app. But this is not a captive audience and they can't be marketed to as such.Growing their user base is not enough for Snap stock. For the company to really grow, they have to find a way to monetize that base. I'm not saying it can't be done; I'm just skeptical.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Why Iam Taking a Wait and See Approach on Snap Stock appeared first on InvestorPlace.
Shares of Snap Inc. are up 1.8% in premarket trading Tuesday after Susquehanna analyst Shyam Patil upgraded the stock to neutral from negative, citing "constructive" advertising channel checks and expectations for more progress in the fourth quarter. He wrote that the popularity of Instagram's "stories" feature seems to be making advertisers more willing to market on Snap's "stories" as well. Patil also sees room for Snap to meet or exceed its user-growth forecast of two to four million net additions for the third quarter. He's staying sidelined on the stock, however, due to its valuation. Snap shares have gained 16% in the past three months, as the S&P 500 has risen 3.8%.
Best known for its Snapchat app, Snap has a real chance of meeting or even surpassing its goal of adding 2 million to 4 million new users in the fourth quarter, a note from Susquehanna says.
The boss of L’Oréal, the world’s largest beauty company, admitted in an interview with MarketWatch that pollution is good for business. He also insisted that a trend among millennials to digitally enhance their looks on social media does not make beauty products redundant but actually boosts business.
This has been a good year for Snap (NYSE:SNAP). Snap stock is up 186% in 2019, and it even reached a new 52-week high at the end of July. Source: dennizn / Shutterstock.com SNAP's stock growth continues to outperform peers like Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR). CEO Evan Spiegel been selling millions of the company's shares. Just last week he sold over $33 million worth of SNAP stock. This seems to be a recent trend as both Facebook CEO Mark Zuckerberg and Amazon (NASDAQ:AMZN) CEO Jeff Bezos have also been selling millions of their company's shares.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSnap has been steadily improving its fundamentals after a rough 2018. The company's user base continues to steadily grow, which has boosted revenue and increased investor confidence. * 7 Discount Retail Stocks to Buy for a Recession Even still, some Wall Street analysts are hesitant when it comes to SNAP and the stock is considered a moderate buy. So is Snapchat stock worth investing in? Here are three things to consider first. 1\. User Base GrowthIn 2018, Snap's user base struggled after the launch of Instagram Stories, but the company has experienced a major shift this year. During the first quarter, Snap added four million daily active users and this figure increased to 13 million during the second quarter. The company now boasts 500 million monthly active users. This growth was largely fueled by Snap's updated version of its app and an increased focused on AR technology. Additionally, Snap recently announced it is partnering with Spotify to allow users to share music and podcasts directly within the app. 2\. Snap Flies under Regulation RadarThis year, the news has been relatively light when it comes to SNAP. The company has avoided much of the criticism it endured in 2018 over top executives leaving the company. Most importantly, SNAP avoided the regulatory issues that have plagued Facebook and other big tech companies. Facebook, in particular, has dealt with a $5 billion FTC fine and criticism over its new cryptocurrency Libra. 3\. Snap and GamingSnap's advertising business continues to be a strong source of revenue but that company's gaming business is where the real opportunity could lie.Last April, the company launched Snap Games, which quickly attracted the attention of the gaming developer Zynga (NASDAQ:ZNGA).Zynga introduced a new battle royale game exclusively on Snap's platform called Tiny Royale. SNAP also introduced five other titles when it launched in the spring. According to Evercore ISI analyst Kevin Rippey, Snap Games could bring in hundreds of millions of dollars in sales by 2020. The Bottom Line on Snap StockDuring its most recent earnings report, company executives seemed optimistic about SNAP's future growth prospects. The company's third-quarter revenue guidance has SNAP earning between $410 million and $435 million in revenue. And this is entirely possible if the company can keep growing its user base, increase engagement on its platform, and find new sources of revenue. All in all, we can expect good things from SNAP stock in the coming years. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Here are 3 Reasons Why SNAP Stock is Soaring in 2019 appeared first on InvestorPlace.
PitchBook released its new 2019 rankings for the university programs that produce the most entrepreneurs who go on to score venture capital funding.
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis 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 firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, 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 firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, 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.
It's no secret that social media has radically altered how we behave online – but are those behaviors a bad thing? VSCO CEO Joel Flory joins The Final Round to discuss the rapidly evolving digital landscape, and how mental wellness trends are being popularized online.