In a move to get people spend more time on its app, Snapchat is launching a new gaming platform called Snap Games that features original games only available on Snapchat through its group chats.
The move is timely as its user numbers have recently declined coupled with stiff competition from Facebook’s Instagram.
The game will focus on multiple players in real time. Starting with six games, these will be directly available on the app. Plus, the gamers can also score extra points by watching six second ads on the app. These could be veritable sources of revenue for the company.
With this move, Snap will be joining forces with companies that are exploring the video gaming streaming market. For example, Apple (AAPL) launched a new game subscription service called Apple Arcade and Google (GOOGL) launched a gaming platform called Stadia. The gaming demographic has widened now and companies are no longer looking at a teenage male.
Snapchat believes it could stay relevant by rolling out a service in which its games will enable communication among players during the game. This will make it easier for players who previously had to convince their friends to join the games they had first downloaded from the app store.
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 .
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 298 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 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.
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 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 (6.527) is normal, around the industry mean (21.654). P/E Ratio (0.000) is within average values for comparable stocks, (41.233). Projected Growth (PEG Ratio) (5.636) is also within normal values, averaging (3.359). Dividend Yield (0.000) settles around the average of (0.023) among similar stocks. P/S Ratio (3.712) is also within normal values, averaging (9.464).
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.
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
A.I.dvisor indicates that over the last year, SNAP has been loosely correlated with PINS. These tickers have moved in lockstep 65% 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.
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