Shares of Snap Inc. plummeted nearly 13.8% on Wednesday following the announcement of the exit of its CFO, Tim Stone, after only eight months on the job. His exit follows the departure of Jason Halpert, the head of human resources.
This marks the exit of its second CFO in less than two years, since its IPO in March 2017.
With the exit of experienced industry personnel, several Wall Street analysts opined that this departure would be crucial for the company as the loss would make things tougher for the company to hire and retain top executives.
These are, however, not the only instances of executive departure. Over the past year, the company has witnessed the exit of several top-level executives as it faced a steady decline in users and tough competition from Facebook Inc.'s Instagram.
Losing more than 65% of its value since its IPO almost two years ago, the market value of Snap after the exit of CFO fell from $8.5 billion before the start trading to about $7.3 billion by the end of the day.
On Wednesday, RBC Capital Markets analysts have downgraded the stock from outperform to sector perform, while Summit Insights Group lowered its price target by 17% to $5.
According to analysts, Snap’s 28-year-old Chief Executive Evan Spiegel’s increasing centralized control could be driving the heavy turnover in the executive ranks.
The only positive news, in Tuesdays filing, was that the company expects its quarterly results would be slightly favorable to the upper end of its guidance.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where SNAP advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SNAP's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where SNAP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SNAP just turned positive on February 29, 2024. Looking at past instances where SNAP's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on March 21, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SNAP as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SNAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SNAP broke above its upper Bollinger Band on March 07, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. SNAP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.831) is normal, around the industry mean (17.551). P/E Ratio (0.000) is within average values for comparable stocks, (53.617). Projected Growth (PEG Ratio) (5.636) is also within normal values, averaging (3.433). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (4.008) is also within normal values, averaging (27.591).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SNAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of a text and photo based messaging application for mobile phones
Industry InternetSoftwareServices