tl;dr
Snap (NYSE:SNAP) received an upgrade from Deutsche Bank based on anticipated improvements in advertising trends, Snapchat expansion, and its partnership with Amazon (NASDAQ:AMZN). This upgrade resulted in premarket trading shares rising by more than 3%. Analyst Benjamin Black cited successful adver...
Snap (NYSE:SNAP) received an upgrade from Deutsche Bank based on anticipated improvements in advertising trends, Snapchat expansion, and its partnership with Amazon (NASDAQ:AMZN). This upgrade resulted in premarket trading shares rising by more than 3%. Analyst Benjamin Black cited successful advertising platform checks, predicting a second quarter of ad-spend acceleration and subsequently raised the rating on Snap to Buy from Hold, with an increased price target of $19 from $10.
Additionally, Snapchat , which recently surpassed 7 million subscribers, is expected to generate incremental revenue for the company. The Amazon partnership, allowing U.S. Snapchat users to make direct purchases from the e-commerce platform, is seen as a significant opportunity for Snap, considering Amazon's substantial advertising spending. With these developments and the potential for increased advertising from China, investor sentiment could improve, according to Black. While Seeking Alpha authors rate Snap a HOLD and Wall Street analysts rate it a BUY, Seeking Alpha's quant system consistently rates SNAP a HOLD.
More about Snap Inc
Key Financial Metrics:
- Market Cap: $26,803,393,000
- Revenue: $4,544,563,000
- EPS: -0.86
- P/E Ratio: 14.1
- Dividend Yield: 0
- Beta: 2.847
Stock Performance:
- Snap Inc. has shown a bearish trend with a negative EPS and a high beta, indicating higher volatility compared to the market.
- The P/E ratio of 14.1 suggests that the stock may be overvalued relative to its earnings.
Market Sentiment:
- The company operates in the technology sector and is involved in computer programming and data processing services.
- Investors should consider the potential risks associated with the stock's volatility and overvaluation when making investment decisions.
- It's important to note that past market behavior is not always indicative of future performance.
More about Amazon.com Inc
Amazon.com Inc is a leading multinational technology company with a strong focus on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is a dominant force in the U.S. information technology industry, ranking among the Big Five companies alongside Google, Apple, Microsoft, and Facebook. With a market capitalization of $1.63 trillion, the company's stock performance has shown resilience, with a current stock price of $3,027.63 and a 52-week high of $3,552.25. The stock has experienced a 1.91% increase, indicating positive market sentiment. However, with a relative strength index (RSI) of 53.95, the stock is not currently overbought or oversold. The company's financial metrics also reveal a strong growth trajectory, with a revenue of $554.03 billion and a price-to-earnings ratio of 182.86. While Amazon's market dominance and strong financial performance are notable, potential risks and uncertainties should be considered, as past market behavior is not always indicative of future performance.
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