The stock's decline likely comes both because of weakness in growth stocks (like Snap) across the broader market and an analyst's move to reiterate a sell rating for Snap shares. Image source: Getty Images.
Why is Snapchat stock dropping?
- Personally, i find snapchat a bit complicated to use and not very user-friendly compared to other social platforms. ( I think most people feel the same way)
- Most people think the company is overvalued for it being just a camera app.
- In recent years, the reputation of the company is not in a good shape.
Why did Snapchat stock crash?
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Where will snap stock be in 3 years?
Snap's stock trades at about 11 times this year's sales and 9 times next year's sales. Analysts expect its revenue to rise 35% this year and 31% next year, but its bottom line is expected to stay ...
Is Snapchat a good investment?
The trading price of XP Inc. (NASDAQ:XP) floating higher at last check on Wednesday, February 16, closing at $36.15, 2.29% higher than its previous close. Traders who pay close attention to intraday price movement should know that it has been fluctuating ...
Why is Snapchat stock dropping?
Snap stock tanked after the company lowered its earnings and revenue expectations for the June quarter, citing a rapidly slowing economy. “The macroeconomic environment has deteriorated further and faster than anticipated,” the company said in a filing on Monday.
Is Snap stock a good buy?
So, to answer the question posed in the headline, value investors should not buy Snap stock just yet. It is still expensive even after falling significantly.
Is Snap stock Expected to Rise?
The analysts' Snap stock price forecast suggested it could average at $34 in the next 12 months – a 144.08% increase from the last price.
Is Snap a good long term buy?
Is Snap Stock a Good Buy? Taking a longer-term look at Snap stock, the company is trending in the right direction. In 2021, Snap's revenue jumped 64% annually to $4.12 billion. 2021 was also its fifth straight year of approximately 50% year-over-year (YOY) revenue growth.
Is Snapchat a buy Zacks?
Zacks' proprietary data indicates that Snap Inc. is currently rated as a Zacks Rank 4 and we are expecting a below average return from the SNAP shares relative to the market in the next few months.
Is Netflix a buy?
Netflix Inc. has become a value stock — a bargain, according to Charles Lemonides, chief investment officer at ValueWorks in New York. During a year that has featured a re-rating for so many rapidly growing companies that had been trading at lofty valuations to earnings, Netflix Inc.
How high will SNAP go?
The 34 analysts offering 12-month price forecasts for Snap Inc have a median target of 26.00, with a high estimate of 59.00 and a low estimate of 14.00. The median estimate represents a +97.42% increase from the last price of 13.17.
Is SNAP stock undervalued?
Snapchat (SNAP) stock has started to make a recovery after declining 50%-plus since September 2021. Snapchat is still highly overvalued, and the recovery could be a dead cat bounce influenced by the broader market.
What is Nio price target?
The 31 analysts offering 12-month price forecasts for NIO Inc have a median target of 30.14, with a high estimate of 66.85 and a low estimate of 21.94. The median estimate represents a +41.06% increase from the last price of 21.37.
What kind of stock is Snap?
3 Top Tech Stocks Under $20 Per Share Snap is one of the largest and best-known technology companies with a stock price under $20. The company operates Snapchat, a camera application that allows users to capture and share images and video.
Is Google stock a buy?
Its recommendation rating was 1.5 on a scale from one, strong buy, to five, sell. GOOGL has almost, but not quite, as much adulation from analysts. Fifty-three analysts follow GOOGL, and in May, 16 rated it a strong buy, 36 rated it a buy, and one said investors should hold the stock.
Who owns Snapchat?
Snap Inc.Current logo, unveiled on September 24, 2016, during the company's rebrand.FormerlySnapchat Inc. (2011–2016)OwnerEvan Spiegel & Bobby Murphy (95.8% voting power combined)Number of employees5,661 (2021)SubsidiariesSnap Limited16 more rows
Meta Platforms' fumble is taking down more stocks than just its own
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Following Meta Platforms ' ( NASDAQ:FB) flop of an earnings report last night, shares of rival social media stock Snap ( NYSE:SNAP) suffered a sympathetic crash. As of 11:20 a.m. ET Thursday morning, Meta stock was down 24.5%, and Snap was down 20.5%.
So what
Meta Platforms missed on earnings, only barely beat on sales estimates for the fourth quarter of 2021, and predicted as much as a 10% sales miss for the first quarter of 2022. And that poor performance appears to have upset investors in Snap as well.
Now what
What KeyBank really seems to be saying here is that it worries investors won't pay as high a multiple for Snap's sales -- not that it doesn't like the stock. Indeed, it bears repeating that KeyBank still considers Snap stock a buy, and that even the banker's lowered price target still implies 40% upside.
Is Snap going to lose its first quarter?
Snap is predicting losses for its fiscal first quarter, which ended in late March, following an operating loss of about $900 million for the 2020 fiscal year. Despite last month's stock price slump, most investors are expecting those losses to give way to strong profitability over time.
Does Snap make more acquisitions?
Snap will make more acquisitions in the camera and augmented reality niches in its bid to make smartphone cameras more valuable to its users. In the meantime, its challenge is to build on last year's impressive growth (active users spiked 22% last quarter) while improving its finances.
Does Demitri Kalogeropoulos have a position in any of the stocks mentioned?
Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prev.
Is Snap stock going to be volatile in 2020?
Many rallying tech stocks endured a pullback last month, and Snap got caught up in that sell-off. Shares had soared by more than 200% in 2020, after all, making stock price volatility more likely. The company also announced a new push into e-commerce in March that, while promising, could affect earnings over the short term.
What happened
Shares of Snap (NASDAQ: SNAP) dropped 30.8% in January, according to data from S&P Global Market Intelligence. Snap made some news in the month regarding some legal matters and content deals. Some negative analyst commentary about the competitive impact of TikTok also crept into the narrative.
So what
During the pandemic bull market, Snap charged to a price-to-sales ratio above 40 and forward price-to-earnings (P/E) ratio above 200. Those are both high relative to the market in general, and the stock was also expensive relative to its own historical levels. It exited January with a more modest 12.5 price-to-sales and 66 forward P/E ratio.
Now what
Luckily for Snap investors, the first week of February was an eventful one. The stock staged a monster rally on the back of a fantastic earnings report. Snap is now only down 17% year-to-date, and its forward P/E ratio is back to nearly 80 again.
What happened
Shares of photo- and video-sharing social network Snap ( NYSE:SNAP) were hit hard on Tuesday. The stock slid as much as 10.3%. As of 3:35 p.m. EDT, however, the stock was down 7.7%.
So what
Citi analyst Jason Bazinet increased his 12-month price target on Snap stock from $40 to $47 on Tuesday. However, he kept a sell rating on shares. A $47 12-month price target notably represents 14% downside from where the stock is trading at the time of this writing.
Now what
For its second quarter of 2021, management said it expected revenue to be between $820 million and $840 million, up from $454 million in the second quarter of 2020. Management also said it expects daily active users to continue growing at a similar rate in Q2 as they were in Q1.
