Analysts remain bullish on SNAP stock and believe that the company will continue to pull in gains.
Snap Inc (NYSE: SNAP) has been outperforming its rival companies. Recent research by MoffettNathanson revealed that the company is poised to further growth in the coming year. SNAP stock has climbed over 163% in the last year which is really high if compared to Twitter Inc (NYSE: TWTR), which surged about 32% over the past year, and Facebook Inc (NASDAQ: FB), which is up 13.15% over the same period.
Snap Stock Outperforms Stocks of Rival Companies
Currently, Snap stock is up 2.96% to $51.80 in the pre-market. The data by MarketWatch revealed that Snap Inc had gained 0.48% in its year-to-date record. Also, the company has advanced 75.54% over the last three months.
On the 15th of January, a MoffettNathanson analyst, Michael Nathanson, upgraded his rating for Snap from neutral to buy. Nathanson also upped his price target on the company from $39 to $57.
Although Snap’s e-commerce features are yet to be wholly developed, Nathason said the company should include more features like its rival Facebook in the next few months.
Also, the analyst expects that Snap would rebound in online advertising and increased online shopping as a result of the ongoing pandemic.
The MoffettNathanson analyst noted:
“We believe Snap results will surprise on the upside, as we are 15% above consensus 2024 revenue and 30% above consensus 2021 non-GAAP operating income. We are not revising our Snap estimates [now], but we continue to project strong revenue growth and profitability going forward.”
Speaking on his rating upgrade on Snap, the analyst said:
“Our upgrade reflects current macroeconomics conditions supportive of elevated valuations for high growth stocks.”
Furthermore, the analyst is predicting that Snap will grow by 54% in the coming year. Also, the MoffettNathanson analyst expects the company to annually surge 30% till 2024.
Before now, Goldman Sachs also raised its price target on Snap, remaining bullish on its stock. Goldman Sachs analyst Heath Terry increased his Snap stock price target from $47 to $70. In a note, Terry said that there would be a rise in advertisers’ demand for online inventory.
Snap’s Rivals Record Losses
At press time, American microblogging and social networking service Twitter is currently at $46.10 at premarket trading. The current trading price is an increase over its previous close of $45.18. The social networking platform has been recording losses over the past months. In its year-to-date record, Twitter is down 16.57%. The company has also lost 1.40% over the last three months and over 17% over the last month. In addition to recent losses, TWTR has plunged 6.23% in the last five days.
Another Snap’s rival, Facebook, has also been declining over the last few months. Similar to Twitter, Facebook has also been plunging. Facebook has lost nearly 8% in its year-to-date record and 3.84% over the last three months. The social networking service company is also down almost 8% in the last one month and 2.13% in the last five days.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
