Snap Gains Over 25% - What's Going On?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 26 2024
0mins
Should l Buy SNAP?
- Snap Inc. Financial Performance: Snap Inc. shares surged in premarket trading following the company's first-quarter financial results, which included earnings of 3 cents per share, beating estimates.
- Key Financial Metrics: Adjusted EBITDA for Snap was $46 million, a significant increase from the previous year, and quarterly sales reached $1.195 billion, surpassing analyst expectations by 6.74%.
- New Tools and Features: Snap highlighted new tools like Creative Templates, longer video posts, and AI-powered AR Lens creation to enhance user experience.
- User Growth and Engagement: The company reported an increase in daily active users to 422 million, up 10% year-over-year, with growth attributed to onboarding over 1,500 Snap Stars.
- Future Outlook: Snap anticipates further growth in the second quarter, projecting revenues between $1.225 billion and $1.255 billion based on an estimated DAU of approximately 431 million.
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Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 4.820
Low
7.00
Averages
9.57
High
13.00
Current: 4.820
Low
7.00
Averages
9.57
High
13.00
About SNAP
Snap Inc. is a technology company. Its flagship product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside the application. Snapchatters can interact with any or all the five tabs. Additionally, it offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features, from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. The Company also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads, Commercials, and Sponsored Snaps.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Analyst Downgrades: Multiple Wall Street firms downgraded Pinterest's stock or reduced target prices following the earnings report, with concerns including decelerating growth, monetization challenges, and intensified competition due to advancements in AI.
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- Surge in Trading Volume: The company saw trading volume reach 66 million shares, approximately 311% above its three-month average of 16.1 million shares, indicating strong market reactions to its financial status.
- Strong User Growth: Despite challenges, Pinterest reported a 12% year-over-year increase in global monthly active users for Q4, reaching 619 million, surpassing Wall Street's expectation of 613 million, demonstrating the platform's ongoing appeal.
- Lowered Revenue Guidance: Pinterest projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, reflecting pressure from retail advertisers cutting budgets due to tariffs.
See More
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