Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Snap (SNAP), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended June 2024.
In the closing of the recent trading day, Snap (SNAP) stood at $13.33, denoting a -0.89% change from the preceding trading day.
In the closing of the recent trading day, Snap (SNAP) stood at $13.45, denoting a -0.96% change from the preceding trading day.
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Snap (SNAP) closed the most recent trading day at $16.21, moving +0.19% from the previous trading session.
Despite mixed financial trends, Snap continues to deliver strong growth. The company is betting on augmented reality as the future of social media.
Social media firms Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB), Snap Inc (NYSE:SNAP) and Elon Musk's X have entered into a partnership with the US government's “Alliance to Prevent Drug Harms”, with the aim of disrupting online drug dealing and increasing awareness about synthetic drug misuse. Snap, in a statement, noted that it had been working with Meta building on its own internal programs in 2022, to identify and share ‘patterns and signals of illicit drug-related content and activity across our platforms'.
Snap stock could go up because new users are coming to the platform and advertisers may find the platform increasingly attractive. As it's grown, the company has been inconsistent with profits, making it hard to bet on better profits down the road.
The latest trading day saw Snap (SNAP) settling at $16.50, representing a +0.73% change from its previous close.
Snapchat's Snapchat+ subscription service has led to significant growth in recurring revenue, boosting company margins and their bottom line. The subscription service has driven strong growth in cash flow and EBITDA growth (both past and future), fueling forward projections. Despite the recent share price increase, I believe Snapchat remains undervalued with potential for significant upside, supported by strong financial performance and growth prospects.
Snap Inc. likely trades at a lower valuation multiple due to inconsistent growth despite strong Q1 '24 results. The Snapchat+ subscription service with AI features is a game changer, with a corporate goal to reach 14 million subscribers by year-end. The stock is undervalued compared to social media peers, offering up to 60% upside potential, though a possible dip to sub-$12 is a risk.
SNAP launches new features to enhance personalization for all the nine million Snapchat+ users exclusively.