The latest trading session saw Snap (SNAP) ending at $9.64, denoting a +1.26% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.Prior to today's trading, shares of the company behind Snapchat had gained 3.14% over the past month. This has outpaced the Computer and Technology sector's gain of 1.56% and lagged the S&P 500's gain of 3.67% in tha ...

Rob Kim/Getty Images EntertainmentInvestment Thesis Snapchat’s (NYSE:SNAP) stock has had a steep selloff since my last writeup in July, with shares dropping by 47.57%, driven by what many investors saw as a lukewarm quarter. Investors are grappling with the company’s slower than competitor growth in advertising revenue. This weak growth is concerning for many in the investor base as Snapchat continues to struggle to compete for ad dollars with larger rivals like Meta (META) and Google (GOOGL), which bot ...

Core Viewpoint - Snap's stock has significantly declined due to slower-than-expected revenue growth and challenges in monetization despite a growing user base [1][4]. Group 1: Financial Performance - Snap's Q2 2024 revenue increased by 16% year over year, exceeding $1.2 billion, but Q3 revenue growth is projected to be only 12% to 16% [1]. - The company reported a drop in effective cost per mille (eCPM) by 3% in Q2 after an 8% increase in Q1, indicating challenges in monetization [2]. Group 2: User Base and Demand - Snap has over 850 million monthly users, which has increased ad volume, but the platform is not attracting the expected level of advertising demand [3]. - Despite the growth in user base, Snap's monetization rates are not on par with other advertising businesses, raising concerns among investors [4]. Group 3: Investment Considerations - Snap's stock is currently trading at under three times sales, making it relatively cheap compared to historical valuations [4]. - The company reported a net loss of over $500 million in the first half of 2024 and a free cash flow loss of almost $36 million during the same period, indicating ongoing financial challenges [4][5]. - Given the slowing growth and persistent losses, it may be prudent for investors to wait for clearer signs of improvement before considering an investment in Snap [5].

Marina Gorevaya/iStock via Getty Images In an odd move, Snap, Inc. (NYSE:SNAP) has fallen back to multi-year lows despite reporting strong sales growth in the last quarter. The social messaging company clearly isn't firing on all cylinders, but the market has completely ignored the progress of the business and the promise of a booming subscription service. My investment thesis remains ultra Bullish on the stock below $9. Source: Finviz 850 Million Reasons Snap announced 850 million platform users on a m ...

Snap Inc. NYSE: SNAP is the corporation behind the popular social media platform Snapchat. Despite Snapchat’s undeniable brand recognition and a loyal, growing user base, Snap’s stock price has dropped significantly, down 47% year to date and nearly 90% from its all-time high. Snap’s financial performance has investors and analysts questioning if Snap is a fallen star or an undervalued opportunity ripe for a comeback. Get Snap alerts:Augmented Reality: Snap’s Investment in the Future of AdvertisingSnap Toda ...

Core Viewpoint - Snap's stock may represent a long-term buying opportunity due to positive developments in its business despite recent underperformance and ongoing losses [1][2]. Business Challenges - Snap's stock has declined 47% in 2024, attributed to modest revenue growth and losses, compounded by Apple's privacy policy changes affecting targeted advertising [1][2]. Innovations and Solutions - Snap is innovating to improve return on advertising spend (ROAS) through new models like the 7/0 Optimization, which has led to a 30% to 50% increase in ROAS for some clients [3][4]. - The Conversions API tool has seen a 300% growth in adoption, allowing advertisers to bypass Apple's restrictions and improve targeting by connecting directly to Snap's servers [4]. - Snap leads in augmented reality (AR) advertising, with businesses using AR in campaigns receiving five times more attention than peers [4]. Financial Performance - In Q2, Snap generated $1.24 billion in revenue, a 16% increase year-over-year, with a significant 151% rise in "other" revenue from the Snapchat+ subscription service [5][6]. - Operating costs increased only 1.2% in Q2, indicating that revenue growth was largely organic, despite a net loss of $248.6 million, which improved from a $377.3 million loss in the previous year [6]. User Growth and Market Position - Snapchat reached a record 432 million daily active users in Q2, a 9% increase year-over-year, making it attractive for advertisers targeting the 13-34 age demographic [7][8]. - The platform's ability to engage young users is crucial for brand loyalty, as excitement is a key emotional driver for this demographic [8]. Valuation - Snap's stock is trading at a price-to-sales ratio of 3, its lowest since going public in 2017, suggesting an attractive valuation for long-term investors [8].

Snap is testing a “simplified version of Snapchat,” CEO Evan Spiegel wrote in a letter to employees published on Snap’s website Tuesday. The CEO says the simplified version aims to improve the platform’s accessibility and usability. For those that remember Snapchat’s 2018 redesign, this news may do little to stoke confidence.Spiegel attempted to rally employee spirits with his letter on Tuesday after a depressing year for the company’s stock price, which has fallen nearly 50% in 2024. “Investors are conce ...

Core Insights - The article discusses the lessons learned from underestimating the severity of the 2022 bear market, particularly regarding Snap, Inc.'s stock performance and the broader implications for investors [1][2]. Group 1: Market Conditions and Stock Performance - The 2022 bear market was underestimated, leading to poor investment decisions, particularly in stocks that had already lost significant value [2][3]. - Snap, Inc. experienced a decline of approximately 65% in stock value since a bullish call was made in April 2022, making it unlikely to outperform the S&P 500 by April 2027 [1][4]. - The advertising revenue decline during the bear market negatively impacted Snap, as major competitors like Alphabet reported only single-digit increases in ad revenue [3][5]. Group 2: Financial Metrics and Comparisons - Snap's revenue for the first half of 2024 was reported at $2.4 billion, only slightly above the $2.2 billion earned in the same period in 2022 [5]. - Despite a relatively small market cap of $15 billion, Snap's revenue growth of 12% over two years pales in comparison to Meta's 35% growth during the same timeframe [5][6]. - Snap's price-to-sales (P/S) ratio of 3 is near all-time lows, while Meta's P/S ratio stands at 9, indicating a potential valuation edge for Snap [5][6]. Group 3: Strategic Lessons - Investors should recognize the difficulty in predicting market bottoms, as the timing of recovery can be unpredictable [6]. - The performance of Snap in a downturn was not adequately considered, particularly its inability to compete with Meta in the social media space, which led to faster negative impacts and slower recovery [6]. - Until Snap can accelerate its revenue growth, it may be more prudent for investors to take speculative positions rather than making bullish calls [6].

Snapchat announced on Wednesday that it’s releasing new resources for educators to help them create safe environments in their schools by better understanding how their students use the app. The company debuted a new website dedicated to helping educators familiarize themselves with the app, along with a resource document to help them protect students.The announcement comes as lawmakers have grilled Snapchat, and other social networks, for not doing enough to protect children and teens on their platforms. I ...

Core Viewpoint - Snap Inc. is experiencing significant stock declines and technical bearish signals, raising concerns among investors about its future performance [1][5]. Group 1: Stock Performance - Snap's stock has decreased by 41.82% year-to-date and 34.47% in the past month, with only a slight yearly gain of 1.62% [1]. - The current share price is $9.39, which is below various moving averages, indicating a bearish trend [4]. Group 2: Product Innovation - Snap is set to launch its fifth-generation Spectacles with augmented reality capabilities on September 17, aiming to leverage its Snapchat platform [2]. - The new Spectacles represent a potential growth opportunity, although investor sentiment remains cautious due to recent insider stock sales [2]. Group 3: Insider Transactions - Recent insider sales, including Chief Accounting Officer Rebecca Morrow selling 8,923 shares for over $81,000, have raised concerns among investors [3]. - These transactions were primarily for tax obligations related to vested restricted stock units, but they coincide with Snap's declining stock performance [3]. Group 4: Technical Analysis - The formation of a Death Cross, where the 50-day moving average has fallen below the 200-day moving average, signals a bearish trend for Snap [4]. - Additional indicators, such as a negative MACD of -1.19 and an RSI of 31.43, suggest selling pressure and that the stock may be oversold [4].