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snap – US Market Buzz http://www.usmarketbuzz.com Nation and Economy Mon, 20 Jul 2020 16:28:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.23 Snap Inc (NYSE: SNAP)’s Shares Gain Momentum After Earnings, Up 50% YTD http://www.usmarketbuzz.com/snap-inc-nyse-snaps-shares-gain-momentum-after-earnings-up-50-ytd-3509 Mon, 25 Feb 2019 16:34:48 +0000 http://www.usmarketbuzz.com/?p=3509 Snapchat parent Snap Inc (NYSE: SNAP) stock has been on a tear since the company reported its fourth-quarter results earlier this month. The stock has risen 31.8% since the company’s fourth-quarter release, and a whopping 84.6% since reaching its all-time low of $4.99 on December 21.

ASDN vs SNAP – Why ASDN Could Massively Outperform SNAP in 2019

The company’s revenue rose 39.6% YoY (year-over-year) to $389.8 million, and its net loss shrank YoY to $191.7 million from $350 million. However, Snapchat’s daily active user count was flat sequentially, after falling by 5 million users in the previous two quarters. The decline came after the social media company’s new version of its app met with major backlash. While the company has since tweaked the app, it never returned to its previous version.

Snapchat updates its app occasionally. The company is expanding its relationship with the NHL (National Hockey League), set to launch a highlight show recapping the top ten plays of the previous week through curated “Our Stories.”

Snap is trading at 8.2 times its estimated 2019 revenue, with Wall Street expecting its revenue to grow 29.5% this year. Meanwhile, Facebook (FB) is trading at 6.7 times its 2019 revenue estimate, which implies 23.5% growth.

While Snapchat’s revenue has continued to grow robustly, its user growth is stalling. This pattern is concerning, as social media companies’ revenue growth tends to lag their user growth—if Snap is unable to grow its user base, its revenue growth could slow down. Therefore, Snap stock could soon peak.

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