Snap (SNAP, $63.61) expects a first-quarter EBITDA loss , despite Q4 earnings beat
Snap, Inc. expected a first-quarter EBITDA loss , despite a better-than-expected financial report for the fourth quarter.
For the fourth quarter, the social media company’s adjusted earnings came in at 9 cents a share – compared to the 7 cents expected by analyst polled by FactSet. Revenue of $911 million also was higher than the $852.3 million estimated by analysts.
The company projected adjusted EBITDA -- earnings before interest, taxes, depreciation, and amortization – in the range of -$70 million to -$50 million in the first quarter. It expects revenue to be between $720 million and $740 million, vs. $462 million in the same period a year ago.
"We delivered our first full year of Adjusted EBITDA profitability," said Evan Spiegel, CEO, in a statement. "As we look towards the future, we’re excited to build on our investments in augmented reality, mapping, and content to drive our ongoing growth."
SNAP's RSI Indicator recovers from overbought zone
The 10-day RSI Oscillator for SNAP moved out of overbought territory on December 04, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 instances where the indicator moved out of the overbought zone. In of the 36 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where SNAP's Stochastic Oscillator exited the overbought zone, the price fell further within the following 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 December 03, 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 26, 2024. You may want to consider a long position or call options on SNAP as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SNAP just turned positive on November 27, 2024. Looking at past instances where SNAP's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
SNAP moved above its 50-day moving average on November 22, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SNAP advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (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 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 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 (7.692) is normal, around the industry mean (11.086). P/E Ratio (0.000) is within average values for comparable stocks, (48.888). 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 (19.577).
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 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 89, placing this stock worse than average.
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General Information
a developer of a text and photo based messaging application for mobile phones
Industry InternetSoftwareServices