Snap Inc. (SNAP) – Get the report shares rose Tuesday after Goldman Sachs analysts raised the messaging app maker’s price target to Wall Street’s highest.
Goldman analyst Heath Terry maintained its stock purchase rating, but raised its target price to $ 23-70 per share, the highest on Wall Street, citing “a number of technological innovations and product associations ”that could accelerate revenue growth beyond Street forecasts.
Snap himself declined to provide guidance on current quarter’s revenue when he posted third-quarter earnings of hitting the street on Oct. 20, due to the pandemic’s greater uncertainty, but noted that “it can achieve year-on-year revenue growth of 47% to 50% “. if the holiday season advertising meets the above trends.
“Snap’s Spotlight product, new ad campaign goals, and bid types, and the Unity partnership, particularly the inclusion of Unity Ads on the Adapt (SAN) audience network, have the potential to ‘further drive the growth of interaction and provide a valuable scale for advertisers, “Terry said.
“In addition, recent ad checks, as well as third-party data, suggest higher performance than the company’s initial guidelines for Q4, an acceleration we believe is sustainable beyond the current quarter.”
Snap shares rose 11.2% more at the start of trading on Tuesday to change hands to $ 53.70 each, a move that would extend the stock’s six-month gain by around 130%. Snap traded at an all-time high of $ 54.71 each on Dec. 17.
Snap shares were first traded on the Nasdaq on March 2, 2017 at $ 25 per share after their IPO at $ 17 each. Shares fell to less than $ 5 per share in December, amid uneven attempts by co-founder and CEO Evan Spiegel to simultaneously increase the appeal of the signature messaging app for older users, while maintaining their pace of attention among celebrity endorsers.
However, since 2019, the shares have been an uninterrupted operation that has added a value of nearly $ 70 billion to the technology group based in Santa Monica, California, as it added more users and attracted more advertisers to its Snapchat platform, a social network of great influence. multimedia tool for teen and young users.
Snap’s third-quarter revenue grew 52% from last year, thanks in part to the July Facebook boycott (FB) – Get the report by key advertisers, with daily active users up 18% from the same period last year to 249 million.
Tightly adjusted, the group also achieved a third-quarter profit of one cent per share, compared to last year’s loss of 4 cents per share and the consensual street forecast of a loss of 5 cents per share. action.