Snap Reports Strong Q4 Earnings, Beats Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SNAP?
Source: Benzinga
Snap Inc. shares fell nearly 10% as the stock hit a 52-week low amid broader market weakness, with the Nasdaq-100 down 1.57% and the S&P 500 down 1.45%.
Despite reporting a 10% increase in Q4 sales to $1.72 billion and a net income of $45.2 million, Snap's forecast for Q1 revenue fell short of expectations, projecting between $1.50 billion and $1.53 billion, which is below the analysts' average estimate of $1.55 billion. This indicates significant competitive pressure from rivals like Meta and TikTok, contributing to the stock's decline.
The company's strong earnings report, which beat expectations, may not be enough to offset concerns about user growth and revenue forecasts. Analysts have adjusted their price targets, reflecting a cautious outlook on Snap's future performance.
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Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNAP is 9.57 USD with a low forecast of 7.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 5.120
Low
7.00
Averages
9.57
High
13.00
Current: 5.120
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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