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Feb 06, 2019
Snap’s (SNAP, $8.76) soaring successes beat estimates

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.

Related Ticker: SNAP

SNAP in upward trend: 10-day moving average moved above 50-day moving average on August 07, 2026

The 10-day moving average for SNAP crossed bullishly above the 50-day moving average on August 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 81%.

Price Prediction Chart

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. 45 of 60 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 75%.

The Momentum Indicator moved above the 0 level on September 10, 2026. You may want to consider a long position or call options on SNAP as a result. In 70 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.

Following a +6.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where SNAP advanced for three days, in 220 of 279 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.

The Aroon Indicator entered an Uptrend today. In 111 of 143 cases where SNAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.

Bearish Trend Analysis

The 10-day RSI Indicator for SNAP moved out of overbought territory on August 26, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 similar instances where the indicator moved out of overbought territory. In 18 of the 21 cases, the stock moved lower in the following days. This puts the odds of a move lower at 86%.

The Moving Average Convergence Divergence Histogram (MACD) for SNAP turned negative on September 04, 2026. 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 44 similar instances when the indicator turned negative. In 40 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.

SNAP broke above its upper Bollinger Band on August 25, 2026. 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.

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. SNAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued 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 SMR rating for this company is 94 (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 Valuation Rating of 98 (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 (4.985) is normal, around the industry mean (5.849). P/E Ratio (0.000) is within average values for comparable stocks, (27.560). SNAP's Projected Growth (PEG Ratio) (527.094) is very high in comparison to the industry average of (27.634). Dividend Yield (0.000) settles around the average of (0.048) among similar stocks. P/S Ratio (1.511) is also within normal values, averaging (69.923).

The Tickeron PE Growth Rating for this company is 100 (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 Tickeron Profit vs. Risk Rating rating for this company is 100 (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 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Nebius Group N.V. (NASDAQ:NBIS), Baidu (NASDAQ:BIDU), Tencent Music Entertainment Group (NYSE:TME), Pinterest (NYSE:PINS), Snap (NYSE:SNAP), Zillow Group (NASDAQ:Z).

Industry description

Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.

Market Cap

The average market capitalization across the Internet Software/Services Industry is 142.29B. The market cap for tickers in the group ranges from 2.69K to 4.12T. GOOGL holds the highest valuation in this group at 4.12T. The lowest valued company is STBXF at 2.69K.

High and low price notable news

The average weekly price growth across all stocks in the Internet Software/Services Industry was -3%. For the same Industry, the average monthly price growth was -4%, and the average quarterly price growth was -4%. SLE experienced the highest price growth at 25%, while SJ experienced the biggest fall at -30%.

Volume

The average weekly volume growth across all stocks in the Internet Software/Services Industry was 6%. For the same stocks of the Industry, the average monthly volume growth was -28% and the average quarterly volume growth was -46%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 73
Price Growth Rating: 63
SMR Rating: 77
Profit Risk Rating: 93
Seasonality Score: -12 (-100 ... +100)
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General Information

a developer of a text and photo based messaging application for mobile phones

Industry InternetSoftwareServices

Profile
Details
Industry
Internet Software Or Services
Address
3000 31st Street
Phone
+1 310 399-3339
Employees
5261
Web
https://www.snap.com
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