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Is Snapchat Stock a Buy? SNAP Stock up 29%! | SNAP Stock Analysis


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Is Snapchat Stock a Buy? SNAP Stock up 29%! | SNAP Stock Analysis

Here's a look at the Snapchat stock and as we can see, it's currently trading for $36.50 per share and it was of 28-point 34% for the one-day chart alone. And the reason for that was because Snapchat crushed analyst Q3 Revenue expectations, which sent its stock soaring. Now, let's try to take a look at how the Snapchat stock has been performing

over time. So for the day, we already went over it was up close to twenty-nine percent for the past month. We can see that the stock was up about 45 percent over the past six months. Stock is up to one hundred twenty-eight percent and over the past year. The stock is up to one hundred seventy-seven percent. Now, let's try to compare that performance to some of its competitors. So as you can see this blue line represents Snapchat stock while the yellow represents Facebook stock. So if we were to take a look over the past month we can see the snap is up 44 percent while Facebook is up ten percent year-to-date snap is up 118 percent while Facebook is up 33 percent

of the overall time. We can see that Snapchat is up 35 percent while Facebook is up to six hundred twenty-nine percent. We can also compare the performance of Snapchat. At to the S&P 500 index over the past month, the snap is up forty-three percent, which is greater than the ESPYs 4% return year-to-date snaps 118 percent beats the ESPYs 6% return and then if we were to take a look at over the past five years Snapchat is up 35 percent while the S&P 500 is up 66% now we should also take into account the Snapchat went public around the year 2017. So they don't really have the full five years of data. Now, let's talk a little bit about Snapchat in general before we dive into their earnings which sent the stock soaring. So first the Company has two hundred forty-nine million daily active users who use Snapchat every day on average and there are over 30 minutes of time spend per daily active user on Snapchat every day on average. There are over four billion snaps created every day over 180 million daily active users

engage with augmented reality or 75% of the 13 to 34-year-old US population uses Snapchat and over one trillion dollars in direct spending power of Gen Z and Millennials, which is mainly their target audience, and here's a look at the company. He's Mission Snapchat is basically an app that empowers people to express themselves live in the moment learn about the world and have fun together. And it's the easiest and fastest way to communicate the full range of human emotions with friends without pressure to be popular prettier. Perfect. Now leading up to the earnings we can actually see that there was some great bullish sentiment headed for Snapchat stock so we can see that ahead of Snapchats earnings and analysts reiterated his snap by rating and boosted the stock price forecast from twenty-seven dollars per share to 32 dollars per share and Interesting because after the company reported earnings, they were actually able to achieve that analysts Target price. And here's what he had to say.

He said that they expect daily active users at the high end of snaps guidance range in Q3 supported by Steady gains in North America Europe and inflection in the rest of world segment, and he believed that snapshots Revenue growth accelerated materially from quarter to levels and there were positive signals from third-party advertisers and agencies since August which suggested that the revenue growth rate implied by snaps investment plans for quarter 3. It proved to be conservative and as could consensus expectations, and now let's actually get into the earnings. So we see that for adjusted earnings per share the company reported one cent versus an expected loss of five cents per share. They had revenues of 679 million dollars versus five hundred fifty-five point nine million expected. They had Global daily active users of 249 million versus 244 Point 12 million and average revenue per user of two dollars and 73 cents versus two dollars and 27 cents expected and because of this we can see

that snaps. The stock price soared more than 22 percent after hours. So talking further. We see that the company's net loss filter 200 million dollars which were down nearly 12% from the 227 million dollar net loss last year. And one of the Catalyst was the adoption of augmented reality which Snapchat CEO Evan Spiegel said is happening faster than they had previously anticipated and Snapchat said that they use the third quarter as an opportunity to engage with brands that were looking to align their marketing efforts with platforms who share their corporate values now, this is obviously pointing to the fact Fact about the Facebook ad boycott that was taking place around the month of July. So to catch you up to speed basically Facebook was being criticized for not doing enough to combat hate speech and there was just a whole bunch of outrage that was growing and we saw that some major organizations such as the Anti-Defamation League the NAACP and color of change called on businesses to hit pause

on hate and not advertise on Facebook in July and this campaign actually picked up some big steam. We see that companies such as the North Face until ever. The rise in Sony Clorox Adidas Microsoft all announced that they had joined the boycott as well and because of that Snapchat was able to benefit at the expense of the Facebook boycott. Now for further guidance, Snapchat said that they expect year-over-year Revenue growth of 47 percent to 50 percent for the fourth quarter and they expect to reach approximately two hundred fifty-Seven million daily active users in the fourth quarter, but they also expect year-to-year expense girls to be higher and the company's CFO said that Wilders continued on uncertainty about the macro operating environment. We are pleased with the strength of the underlying momentum. We have established with our Advertising Partners. Now, let's talk about how Snapchats been performing over time so we can see that Revenue by geography globally revenues was up 52% from

IN the Q3 of 2019 North America revenues were off 56% Europe was 49 percent and the rest of the world was up 35% as for average daily active users. Globally that was up 18% in North America. It was up seven percent and the rest of the world was the best performer at 43% As we're average revenue per user globally that was up 28% North America up 46% Europe 36 percent and the rest of the world was down 6% know as it currently stands. This company still is generating negative free cash flows, and this has been for a long time and we can see this data dating all the way back to Q2 of 2019 where they had negative 103 million dollars in free cash flows and the most recent quarter saw the negative free cash flows of - 70 million, which actually arose from Q3 of 2019 where they saw free cash flows of Negative 84 million now. I actually wanted to compare Snapchat to Facebook because of course. We already talked about the Facebook ad boycott, but I just wanted to put the numbers into perspective. So we see that Facebook's
daily active users as of Q2 2020. We're 1.7 billion while Snapchats average daily active users were two hundred forty-nine million monthly active users were 2.7 billion and Snapchat does not have monthly active users. But even then we can see that that number is greater than Snapchats. We see Facebook's average revenue per user is at 7:00. I was in five cents worldwide while the average revenue per user globally for Snapchat is two dollars and 73 cents. The average revenue per user for us. And Canada is 36.4 T9 while for Snapchat is Five Point 49 for Europe that sits at $11.30 while for Snapchat that sits at $1.43 and the rest of the world is $1.28. Well for Snapchats it is at ninety-five cents plus we have to realize that Facebook is not only one platform and they're also comprised of WhatsApp messenger and Instagram and there. For they have another metric taking all three of those platforms into account and they call that family daily active people and that currently sits at 2.40 7 billion

people's family monthly active people sit at three point one four billion and family average revenue per person is six dollars and ten cents. Now, I know we're talking about Snapchat, but I would be very interested to see Facebook's Q3 results on October 29 so we can see how much of an effective Facebook ad boycott had on the company now moving back to Snapchat. Let's take a look at some of their estimates and we can see that the average estimate for As is a loss of 18 cents per share for the current year 2020 and next year 2021. They're expected to turn a profit of 10 cents per share as for revenues. The average estimate for the current year 2020 is to point one nine billion which represents your over-year growth of 27.8% and next year. They're expected to do three-point zero three billion dollars, which will be the growth of 38.3% as for the next five years, in general, the growth estimate for the company is that they will grow at sixty-seven point four percent now finally, let's take a look at the

Snapchat stock forecast and price. Agates and currently the analyst rating consensus is a strong buy based on 28 analyst ratings were 22 have a rated as a by V haven't read as a hold and one has the stock rated as a cell and we can see the different price targets by analysts. So the highest price Target by an analyst is $35 per share and the lowest is $19 per share. And then if we take a look at the average of twenty-nine dollars and sixty-five cents per share that would represent about 4.22 percent upside from the current price. And of course, let me know in the comment section below what you think and if you would like me to cover the stock again in the future and of course Is just my personal opinion. This video is for educational purposes only. This is not any sort of investment advice and it's very important for you to do your own research check out some of the helpful links in the description below along with my referral link to sign up for Weeble where you will get two free stocks

if you make a deposit of $100 or more, so be sure to check out those helpful links. If you found this video to be helpful, don't forget to hit the like button and don't forget to comment, and don't forget to subscribe and I'll see you in the next video.