Snap (SNAP) – Get Report, the parent of the photography-focused social-media group Snapchat, received a share price target increase from Guggenheim Securities on Monday.
Shares of the Santa Monica, Calif.-based Snap were down 3.9% to $41 .48 in a broad market swoon.
Analyst Michael Morris, who maintains a buy rating on the shares of Snap, raised the price target on the stock to $52 from $36.
“We have updated our model and valuation on Snap to reflect our greater confidence in the company’s long-term revenue and cash flow growth potential,” Morris said in an investors’ note.
Specifically, Morris said, he believes Snap “is in the early stage of a virtuous cycle that leverages the company’s technology to drive higher user engagement and satisfaction, improved advertiser ROI on a global basis, and expanded content partnerships.”
Low-income people turn out to vote at a rate about 20 percentage points less than higher-income voters, according to a report from the Poor People’s Campaign. That’s for a variety of reasons, from lack of the requisite IDs to transportation impediments. Making matters worse, reaching that population with information about voting historically has been difficult.
Jimmy Chen, CEO of New York City-based Propel, got to thinking about those problems over the summer and realized he was well -positioned to fill that communications gap. His startup is the creator of the Fresh EBT app, which helps Supplemental Nutrition Assistance Program recipients manage those benefits using their electronic benefits transfer (EBT) card, plus save money through coupons to supermarkets and other stores and find jobs.
Participants in Democracy
The app reaches 4 million users, who on average check the app 15 times a month, so Chen figured
As Snap Inc. announced its third-quarter earnings report on Tuesday, its rival social media sites’ stock prices trended upwards at a significant clip, in what some analysts attributed to an increase in advertising spending on the platforms, Bloomberg reported.
Snap (SNAP) reported a revenue increase of 52% to $679 million for the quarter compared to Q3 2019. Net loss was $200 million, down from $227 million a year earlier, and operating cash flow improved by $21 million to $55 million for the quarter.
Snap’s stock was up over 30% on Wednesday with the news of the earnings, but so was its competitors. Pinterest Inc. (PINS) was up nearly 8% by mid-afternoon while Twitter’s (TWTR) shares rose by nearly 8%, and Facebook (FB) saw a stock price increase over 5% at the same time.
According to Bloomberg, two analysts raised their ratings on Pinterest to buy following the release of Snap’s
Snap posted a surprise third-quarter profit on surging user and revenue growth.
Snap said daily active users on its Snapchat platform, a hugely influential social media tool for teenage and young adult users, rose 18% from the same period last year to 249 million over the third quarter. Snap’s revenue, meanwhile, got a boost from the July boycott of Facebook FB by key advertisers and rose 52% to a Street-beating $678.7 million.
On an adjusted basis, the group also nudged itself into a third-quarter profit of a penny a share, compared to a 4 cents per share loss last year and the Street consensus forecast of a loss of 5 cents per share.
“We now reach more than 100 million people in the US alone, and are also seeing strong growth in our core markets in North America, Europe, and Australia,” said co-founder Evan Spiegel during a conference call with
Shares of Los Angeles-based social media firm Snap Inc., the parent of the Snapchat app, are skyrocketing up 20% after a third-quarter earnings report revealed explosive growth amid the coronavirus pandemic.
Snap nabbed revenues of about $679 million in the quarter–52% more than in the same period a year ago and far above Wall Street expectations calling for $550 million.
The firm’s third-quarter net loss of $200 million was 12% lower than the loss last year, and the firm’s adjusted earnings of 1 cent per share also blew past analyst forecasts averaging a loss of 5 cents per share.
Snap, the parent company of ephemeral messaging app Snapchat, grew its number of daily users and raked in more revenue than expected in the third quarter as more people turned to the platform to stay in touch with family and friends during the coronavirus pandemic.
Snapchat had 249 million users who logged in to the app daily in the third quarter, up 18% compared to the same period last year.
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“Our focus on delivering value for our community and advertising partners is yielding positive results during this challenging time. We’re excited about the growth of our business in Q3 as we continue to make long-term investments in our future,” said Evan Spiegel, Snap’s CEO, in a statement on Tuesday. “The adoption of augmented reality
With earnings season gathering pace, now is the time to re-evaluate your portfolio. However, in such an unpredictable environment, investors need to be particularly savvy when making critical investing decisions.
“Markets are now hoping for (and trading on) a smooth election, a big stimulus, the end of the pandemic, and the economy being back to 2019 normal early next year,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. This makes the market particularly vulnerable to disappointment. Indeed, the S&P 500 pulled back this week as stimulus hopes wane and corona fears resurface.
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