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Snap Shares Climb 6% as Analyst Sentiment Remains Strong
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Shares of Snap Inc. (SNAP - Free Report) surged on Friday afternoon, climbing more than 6.5% as analysts and investors alike look to be getting over the app maker’s disappointing first earnings report.
Earlier this week, Snap lost more than 20% of its value following a weak report that saw the company post a loss of $2.31 per share. The company lost nearly $2.3 billion in the first quarter, and while it blamed a good portion of that on stock-based compensation expenses related to its IPO, investors weren’t pleased by the state of its balance sheet.
Nevertheless, Wall Street analysts are remaining optimistic about the stock. In fact, Drexel Hamilton analyst Brian White called the post-earnings sell-off an “excellent buying opportunity” in a note on Friday. White reiterated his “Buy” rating and $30 price target for the stock.
Analysts from JMP Securities also circulated an optimistic note following the report. A team of Ronald Josey, Andrew Boone, and Shweta Khajuria noted that daily active user net adds were below expectations, but cited increased engagement as another reason to be optimistic. JMP maintained its “Outperform” rating and $28 price target.
In other recent analyst activity, Citigroup maintained its “Buy” rating, while Cantor Fitzgerald and Oppenheimer both upgraded the stock to “Underweight” and “Perform,” respectively.
While Snap’s first earnings report didn’t have the immediate reaction from investors that some might have hoped for, the company performed similarly to its social media rivals Twitter and Facebook at the time of their first reports.
There’s clearly a long way ahead for Snap, and the company continues to feel increase pressure from its industry peers. In the same week that we learned about its new Snapchat TV concept, details of Facebook’s original programming planned leaked onto the web, and it looks like Twitter also has a new content plan ready to go.
For now, Snap remains a Zacks Rank #3 (Hold).
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Interested in exclusive Zacks podcast content? Check out the latest edition of the Zacks Friday Finish Line. On this week’s show, the hosts sit down with a co-founder of Tierra Funds to discuss the incredible growth potential in the Latin American real estate market:
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Snap Shares Climb 6% as Analyst Sentiment Remains Strong
Shares of Snap Inc. (SNAP - Free Report) surged on Friday afternoon, climbing more than 6.5% as analysts and investors alike look to be getting over the app maker’s disappointing first earnings report.
Earlier this week, Snap lost more than 20% of its value following a weak report that saw the company post a loss of $2.31 per share. The company lost nearly $2.3 billion in the first quarter, and while it blamed a good portion of that on stock-based compensation expenses related to its IPO, investors weren’t pleased by the state of its balance sheet.
Nevertheless, Wall Street analysts are remaining optimistic about the stock. In fact, Drexel Hamilton analyst Brian White called the post-earnings sell-off an “excellent buying opportunity” in a note on Friday. White reiterated his “Buy” rating and $30 price target for the stock.
Analysts from JMP Securities also circulated an optimistic note following the report. A team of Ronald Josey, Andrew Boone, and Shweta Khajuria noted that daily active user net adds were below expectations, but cited increased engagement as another reason to be optimistic. JMP maintained its “Outperform” rating and $28 price target.
In other recent analyst activity, Citigroup maintained its “Buy” rating, while Cantor Fitzgerald and Oppenheimer both upgraded the stock to “Underweight” and “Perform,” respectively.
While Snap’s first earnings report didn’t have the immediate reaction from investors that some might have hoped for, the company performed similarly to its social media rivals Twitter and Facebook at the time of their first reports.
Back in 2012, shares of Facebook dipped more than 12% on the day after its initial earnings report, and Twitter suffered a worse fate—slipping more than 20% (also read: Was Snap's First Earnings Report Worse Than That Of Facebook and Twitter?).
There’s clearly a long way ahead for Snap, and the company continues to feel increase pressure from its industry peers. In the same week that we learned about its new Snapchat TV concept, details of Facebook’s original programming planned leaked onto the web, and it looks like Twitter also has a new content plan ready to go.
For now, Snap remains a Zacks Rank #3 (Hold).
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Interested in exclusive Zacks podcast content? Check out the latest edition of the Zacks Friday Finish Line. On this week’s show, the hosts sit down with a co-founder of Tierra Funds to discuss the incredible growth potential in the Latin American real estate market:
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>