SNAP Reiterated - Email Alert - 11/23/20 - 9:00 AM EST
We are placing another alert on Snap Inc. (SNAP). We started alerting SNAP a year ago $15.40 a share and then again one month ago at $32.40 a share with a Short-Term Price Target of $39 that has easily been surpassed. The stock closed Friday at $44.29 a share. On October 21st the Company reported blow-out earnings numbers that beat on the top and bottom lines. Revenues grew an impressive 52.1% year/year... a 24% surprise higher and earnings surprised 125% higher than expected. All of this was due to the Company's augmented reality platform that is bringing customers back to its service. As of Sept. 30, over 1.5 million Lenses have been created by the Snap community through Lens Studio.
Overall we like the growth strategy management has in place and look for the stock to trend higher. We are raising our target and look for another good quarter.
SHORT-TERM PRICE TARGET
$52 (Raised from $39 hit)
Strong growth, Augmented reality strategy, mobile gaming, Getting near profitability, Large Earnings beat on top and bottom lines.
OUR SHORT-TERM TARGET PROBABILITY RATING 1-10
10/21/20 - Snap (SNAP) reported 3rd Quarter September 2020 earnings of $0.01 per share on revenue of $678.7 million. The consensus estimate was a loss of $0.05 per share on revenue of $547.2 million. The Earnings Whisper number was for a loss of $0.04 per share. Revenue grew 52.1% on a year-over-year basis.
The company said in its prepared remarks it believes fourth quarter revenue of $824.5 million to $841.3 million is "attainable". The current consensus revenue estimate is $713.4 million for the quarter ending December 31, 2020.
The stock has a 52 week high of $45.60 and a low of $7.89. Support is around $39 a share and should be a good location for a protective sell stop order or self-imposed sell alert.
Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. It also provides Camera, a tool to personalize and add context to Snaps; Friends Page that allows creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of contextual stickers and Bitmojis; and Discover that helps surfacing the stories and shows from publishers, creators, and the community, based on a user's subscriptions and interests. In addition, the company offers Snap Map, which brings to a live map of individual location, showing nearby friends, popular stories, and a heatmap of recent snaps posted; Memories that allows users to choose to save the Snaps they create in a searchable personal collection, and users to create Snaps and stories from their saved Snaps and camera roll; and Spectacles, a hardware product that connects with Snapchat and captures video from a human perspective. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.