Snap (SNAP, $75.12) shares fell -23%, on change in Apple's ad tracking rule
Shares of Snap plunged -23% during after-hours trading Thursday, after the social media company said its ad business was hurt by changes in Apple’s ad tracking rules.
“Our advertising business was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July,” Snap said in a statement. “While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our ad partners to measure and manage their ad campaigns for iOS.”
Snap incurred a loss of -5 cents a share in the latest quarter, vs. a loss of -14 cents a share in the same period a year ago. Analysts expected a loss of -10 cents a share.
Revenue rose + 57% from the year-ago quarter to $1.07 billion, but fell short of analysts’ expectations of $1.1 billion.
For the fourth quarter, the company is expecting sales in the range of $1.165 billion to $1.205 billion below Street forecast of $1.36 billion.
SNAP's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for SNAP turned positive on May 15, 2023. Looking at past instances where SNAP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 16, 2023. You may want to consider a long position or call options on SNAP as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
SNAP moved above its 50-day moving average on May 26, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SNAP crossed bullishly above the 50-day moving average on June 02, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SNAP advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for SNAP moved below the 200-day moving average on May 11, 2023. 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 .
SNAP broke above its upper Bollinger Band on May 17, 2023. 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 Aroon Indicator for SNAP entered a downward trend on May 10, 2023. 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 Seasonality Score of (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 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 (6.418) is normal, around the industry mean (21.632). P/E Ratio (0.000) is within average values for comparable stocks, (40.922). Projected Growth (PEG Ratio) (5.636) is also within normal values, averaging (3.156). Dividend Yield (0.000) settles around the average of (0.023) among similar stocks. P/S Ratio (3.648) is also within normal values, averaging (10.066).
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 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of a text and photo based messaging application for mobile phones
Industry InternetSoftwareServices
SNAP and
Correlation & Price change
A.I.dvisor indicates that over the last year, SNAP has been loosely correlated with PINS. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if SNAP jumps, then PINS could also see price increases.
| Ticker / NAME | Correlation To SNAP | 1D Price Change % | ||
|---|---|---|---|---|
| SNAP | 100% | +0.68% | ||
| PINS - SNAP | 66% Loosely correlated | -0.61% | ||
| SSTK - SNAP | 52% Loosely correlated | +1.13% | ||
| GOOG - SNAP | 49% Loosely correlated | +0.69% | ||
| GOOGL - SNAP | 49% Loosely correlated | +0.77% | ||
| KIND - SNAP | 47% Loosely correlated | +3.48% | ||
More | ||||
