The head of Snapchat operator Snap, Evan Spiegel, presents the new generation of Spectacles in Los Angeles on Sept. 17, 2024. Snap reported better-than-expected third-quarter results on Tuesday, but issued light fourth-quarter guidance. The stock jumped more than 10% in extended trading. Here is how the company did: Earnings per share: 8 cents adjusted vs. 5 cents expected, according to LSEG Revenue: $1.37 billion vs. $1.36 billion expected, according to LSEG Global daily active users: 443 million vs. 441 m ...

Wall Street analysts forecast that Snap (SNAP) will report quarterly earnings of $0.05 per share in its upcoming release, pointing to a year-over-year increase of 150%. It is anticipated that revenues will amount to $1.35 billion, exhibiting an increase of 13.9% compared to the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projectio ...

Snap (SNAP) closed at $10.45 in the latest trading session, marking a +1.75% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.56%. Shares of the company behind Snapchat have depreciated by 2.75% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.65% and the S&P 500's gain of 1.39%. The investment community will be closely monitoring the ...

Company Performance - Snap (SNAP) closed at $10.27, reflecting a +1.18% change from the previous session, outperforming the S&P 500's 0.22% gain [1] - Over the past month, Snap's shares have decreased by 4.15%, underperforming the Computer and Technology sector's gain of 2.29% and the S&P 500's gain of 1.47% [1] - The upcoming earnings report on October 29, 2024, is expected to show earnings of $0.05 per share, representing a year-over-year growth of 150% [1] Revenue and Earnings Estimates - Full-year Zacks Consensus Estimates predict earnings of $0.21 per share and revenue of $5.34 billion, indicating year-over-year changes of +133.33% and +16.03% respectively [2] - The latest consensus estimate for the upcoming quarter anticipates revenue of $1.35 billion, a 13.93% increase compared to the same quarter last year [1][2] Analyst Sentiment and Valuation - Snap currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining stagnant over the past month [3] - The Forward P/E ratio for Snap is 47.76, which is a premium compared to the industry average Forward P/E of 31.81 [3] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [3]

Core Viewpoint - Snap is expected to report third-quarter 2024 results on October 29, with projected revenues between $1.335 billion and $1.375 billion, indicating year-over-year growth of 12-16% [1] - The company anticipates adjusted EBITDA between $70 million and $100 million for the quarter [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is currently $1.35 billion, reflecting a 13.9% increase from the previous year's quarter [1] - The consensus estimate for earnings remains unchanged at 5 cents per share over the past 30 days [1] Earnings Performance History - Snap has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 81.07% [2] Factors Influencing Results - Increased usage of Snapchat, particularly among the Gen Z demographic, is expected to drive Daily Active Users (DAUs) to 441 million, representing an 8.7% year-over-year growth [4] - The company has introduced new features and products, including the fifth generation of Spectacles and AI-driven tools, which are anticipated to enhance user engagement [4][5] Subscriber Growth and Revenue Diversification - Snapchat+ has surpassed 11 million paying subscribers, with features like Creator Collab Campaigns contributing to this growth [5] - The estimated Average Revenue Per User (ARPU) for the third quarter is projected at $3.05, a 4% increase from the previous year [5] Competitive Landscape and Challenges - Snap's stock has declined 39.8% year-to-date, underperforming the Zacks Computer and Technology sector [7] - The company faces challenges from weak advertising spending and competition from major players like Meta and Alphabet [7][10] Valuation Metrics - Snap's forward 12-month price-to-sales ratio is 2.81, higher than the industry average of 2.67, indicating high growth expectations but also elevated risk [8][9] Strategic Positioning - Snap maintains a strong presence among the youth demographic, with 75% penetration among 13-34-year-olds in developed markets [10] - Recent investments in AR commerce and premium subscriptions aim to diversify revenue streams, although monetization efficiency remains a concern [10] Investment Considerations - The company's recent AI innovations and cost optimization efforts show potential for margin improvement, but advertising revenue growth is still vulnerable to macroeconomic conditions [10][11] - Investors may consider waiting for clearer signs of sustained advertiser demand and monetization improvements before making investment decisions [11]

Snapchat (NYSE: SNAP ) will report earnings on October 29th. I'm initiating it with a buy before earnings. Despite the soft revenue guidance for Q3, further exacerbating what I'd call shaky investor confidence with an over 18% dip afterI’m a retired Wall Street PM specializing in TMT; my educational background is a bachelor's in Finance and Economics, and an MBA from Columbia, after which I directly began my career on Wall Street. Since kickstarting my career, I’ve spent over two decades in the market navig ...

Core Insights - Snapchat has managed to defy traditional social media growth expectations, maintaining stability without significant user growth or decline [1] Company Analysis - The platform operates under a unique model where it does not conform to the typical "grow or die" mentality prevalent in the social media industry [1] - The value of social media platforms is typically tied to the number of active users, which has not been the case for Snapchat [1] Industry Context - The social media landscape is characterized by a direct correlation between user growth and platform value, which Snapchat has managed to navigate differently [1]

Company Performance - Snap's stock closed at $10.49, with a daily increase of +0.29%, underperforming the S&P 500's gain of 0.4% [1] - Over the past month, Snap's shares have increased by 3.87%, lagging behind the Computer and Technology sector's gain of 4.88% but outperforming the S&P 500's gain of 3.76% [1] Upcoming Financial Results - Snap is set to announce its earnings on October 29, 2024, with projected earnings of $0.05 per share, indicating a year-over-year growth of 150% [1] - The consensus estimate for Snap's revenue is $1.35 billion, reflecting a year-over-year increase of 13.98% [1] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $0.21 per share and revenue of $5.35 billion, representing increases of +133.33% and +16.08% respectively from the previous year [2] Analyst Sentiment - Recent changes to analyst estimates for Snap indicate positive revisions, suggesting optimism regarding the company's business and profitability [2] - The Zacks Rank system, which assesses stock performance, currently ranks Snap at 4 (Sell) [3] Valuation Metrics - Snap's Forward P/E ratio stands at 49.22, which is a premium compared to the industry's average Forward P/E of 32.25 [3] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries [3]

Snap (SNAP) shares have declined 35.3% year to date (YTD), underperforming the broader Zacks Computer and Technology sector’s appreciation of 24.9%.It has also lagged the Zacks Internet – Software industry, and peers like BOX (BOX) , Reddit (RDDT) and Vertex (VERX) .Shares of Vertex, Reddit, and BOX have returned 28%, 48.3%, and 53.4%, respectively, over the same time frame. The industry has appreciated 25% YTD.SNAP shares’ underperformance can be attributed to stiff competition from Meta Platforms, lower b ...

This is supposed to be peak market conditions for tech stocks, with valuations recovering from the 2022 lows and interest rates set to fall. Snapchat (NYSE: SNAP ) may have missed the memo, as the stockJulian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the convent ...