SNAP stock fell hard in after-hours trading on February 2, 2022, ahead of its upcoming earnings release on February 3, 2022. Does somebody know something or is this just a Technology/Communication Services broader sell-off due to Meta/Facebook’s miss?
Snap resumed with a Buy at Stifel
On January 31, 2022, Stifel analyst Mark Kelley resumed coverage of Snap with a Buy rating and $45 price target. The analyst states that he is encouraged by the resiliency of the platform’s user base throughout the pandemic, along with the company’s pipeline of under-monetized and yet-to-be-monetized products.
Kelley adds that he sees “significant upside” to his estimate for Snap.
Snap price target lowered to $55 from $65 at Jefferies
On January 31, 2022, Jefferies analyst Brent Thill lowered the firm’s price target on Snap to $55 from $65 and keeps a Buy rating on the shares. While his intra-quarter checks were “mixed,” he believes Q4 guidance of about 30% year-over-year revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... growth was conservative and reflects a lot of these factors, said Thill. In addition, his third-party data checks showed DAUs trending above the Street view, providing further indication that Snap and TikTok can grow in tandem, Thill added.
Snap price target lowered to $81 from $104 at Credit Suisse
On January 31, 2022, Credit Suisse analyst Stephen Ju lowered the firm’s price target on Snap to $81 from $104 ahead of quarterly results and to reflect lingering measurement headwinds. The analyst keeps an Outperform rating on the shares given potential for better-than-expected DAU growth with a revamped Android app released in more geographies, potential for better-than-expected ad revenue on ramping product rollouts and marketer adoption, and monetization optionality from increased engagement from Games, Maps, and Spotlight.
Snap price target lowered to $42 from $70 at MKM Partners
On January 28, 2022, MKM Partners analyst Rohit Kulkarni lowered the firm’s price target on Snap to $42 from $70 but keeps a Buy rating on the shares. Shares have over-corrected and are now trading below pre-COVID valuation levels, though the company is likely to remain in a “guidance penalty box” at least thru Q1 earnings, which also coincides with negative optics easing with progressively easier comps, the analyst tells investors in a research note. Kulkarni further warns that while he does not see any risk to near-term Street estimates, his checks indicate slow uptake of SNAP’s IDFA tools.
Snap price target lowered to $65 from $75 at Truist
On January 26, 2022, Truist analyst Youssef Squali lowered the firm’s price target on Snap to $65 from $75 but keeps a Buy rating on the shares as part of a broader research note on Internet and Digital Media. The company should deliver 32% y/y growth on the top-line and 14% EBITDA margins thanks to further monetization gains and DAU growth, but revenue growth and margins should both be a step down from Q3’s +57% and 16%, respectively, reflecting advertiser disruptions from iOS 14.5 and tough Y/Y comps, the analyst tells investors in a research note.
Snap downgraded to Neutral at Wedbush on IDFA headwinds, increasing competition
On January 24, 2022, Wedbush analyst Ygal Arounian downgraded Snap to Neutral from Outperform with a $36 price target as he sees risk to the company’s revenue growth targets stemming from IDFA headwinds, difficult comps from stellar growth in 2020-2021, and increasing competition from TikTok in particular. The analyst has seen little evidence of progress against IDFA since Snap reported Q3 earnings, with his checks indicating continued headwinds across digital advertising. While that is the biggest near- and potentially mid-term impact to Snap’s ability to get back to 50%-plus revenue growth, competitive factors are increasing as well, which leave him more cautious on a risk/reward basis, particularly in an environment where high growth risk multiples are under duress, Arounian argues.
📺 Snapchat Stock Analysis | Social Media Stocks to Buy Now? | SNAP Stock[embedyt] https://www.youtube.com/watch?v=jWUNF_uVSCI[/embedyt]
📉 SNAP Stock Technical Analysis
Both the long and short-term trends are negative. It is usually better to avoid buying stocks with negative trends. SNAP is part of the Interactive Media & Services industry. There are 78 other stocks in this industry, SNAP did better than 47% of them. Volume is considerably higher in the last couple of days. SNAP is currently trading near the lower end of its 52-week range, which is not a good sign. The S&P500 Index is trading in the upper part of its 52-week range, so SNAP is lagging the market.
There is support at 30.42 from a horizontal line in the weekly time frame.
There is resistance at 33.67 from a horizontal line in the daily time frame. There is also resistance at 77.97 from a horizontal line in the daily time frame.
The technical rating of SNAP is bad and it also does not present a quality setup at the moment. SNAP stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when SNAP stock consolidates and has a Setup Rating of 8 or higher.