Snap’s (SNAP, $8.76) soaring successes beat estimates
After several months of dismal performance, Snap Inc.'s latest report confirmed forecast-beating fourth quarter earnings -- sending the beleaguered stock soaring back with gains of more than 20% in Tuesday’s after-hours trading.
The adjusted earnings loss for the fourth quarter stood at 4 cents per share, beating estimates by 4 cents. Sales came-in at $389.82 million, beating estimates by $14.6 million. Revenue increased 36% to a record $390 million, while operating loss improved $166 million to ($195) million. Adjusted EBITDA loss improved $109 million to ($50) million.
The CEO attributes this success to the long-term business strategy of developing its innovation-based businesses, sustainable product development, scaling advertising platform and hiring an expert leadership team.
With its daily average user count hovering around 186 million, the company also managed to boost its revenue per user to $2.09 from $1.53 in the year-ago period.
The year for the company ended on a positive note as user engagement stabilized after rolling out the latest variety of Android application to a small percentage of the community. Also, the company focused on maintaining a relatively flat cost structure over the last couple of quarters, which helped the company grow its full year revenue by 43% on a y-o-y basis.
SNAP in upward trend: price may ascend as a result of having broken its lower Bollinger Band on April 15, 2024
SNAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 33 cases where SNAP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SNAP advanced for three days, in of 320 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 04, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SNAP as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SNAP turned negative on April 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 50-day moving average for SNAP moved below the 200-day moving average on April 10, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 .
The Aroon Indicator for SNAP entered a downward trend on April 17, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 slightly 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 (7.692) is normal, around the industry mean (19.638). P/E Ratio (0.000) is within average values for comparable stocks, (49.308). Projected Growth (PEG Ratio) (5.636) is also within normal values, averaging (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (3.939) is also within normal values, averaging (110.312).
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 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 93, placing this stock worse than average.
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.
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General Information
a developer of a text and photo based messaging application for mobile phones
Industry InternetSoftwareServices