Is Snap Stock a Good Investment?
Snap Investment Advice | SNAP |
- Examine Snap's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Snap's leadership team and their track record. Good management can help Snap navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact Snap's business and its evolving consumer preferences.
- Compare Snap's performance and market position to its competitors. Analyze how Snap is positioned in terms of product offerings, innovation, and market share.
- Check if Snap pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Snap's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Snap Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Snap Inc is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Snap Stock
Researching Snap's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 24.0% of the company outstanding shares are owned by corporate insiders. The company recorded a loss per share of 0.58. Snap Inc had not issued any dividends in recent years.
To determine if Snap is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Snap's research are outlined below:
| Snap Inc appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 4.61 B. Net Loss for the year was (1.32 B) with profit before overhead, payroll, taxes, and interest of 2.81 B. | |
| About 61.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Snap Inc Shares Up 3.14 percent on Nov 29 |
Snap Quarterly Liabilities And Stockholders Equity |
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Snap uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Snap Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Snap's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Snap's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Snap's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-02-06 | 2023-12-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2020-04-21 | 2020-03-31 | -0.07 | -0.08 | -0.01 | 14 | ||
2019-10-22 | 2019-09-30 | -0.05 | -0.04 | 0.01 | 20 | ||
2023-07-25 | 2023-06-30 | -0.04 | -0.02 | 0.02 | 50 | ||
2023-04-27 | 2023-03-31 | -0.01 | 0.01 | 0.02 | 200 | ||
2021-02-04 | 2020-12-31 | 0.07 | 0.09 | 0.02 | 28 | ||
2020-02-04 | 2019-12-31 | 0.01 | 0.03 | 0.02 | 200 | ||
2019-04-23 | 2019-03-31 | -0.12 | -0.1 | 0.02 | 16 |
Know Snap's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Snap is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Snap Inc backward and forwards among themselves. Snap's institutional investor refers to the entity that pools money to purchase Snap's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 11.7 M | Ossiam | 2024-09-30 | 11.3 M | Jericho Capital Asset Management Lp | 2024-09-30 | 10.9 M | Two Sigma Advisers, Llc | 2024-06-30 | 8.3 M | Millennium Management Llc | 2024-06-30 | 8.3 M | Tb Alternative Assets Ltd. | 2024-09-30 | 8 M | Charles Schwab Investment Management Inc | 2024-09-30 | 6.2 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 6 M | Legal & General Group Plc | 2024-06-30 | 5.9 M | Fmr Inc | 2024-09-30 | 209.4 M | Vanguard Group Inc | 2024-09-30 | 103.8 M |
Snap's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 19.47 B.Market Cap |
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Snap's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.22) | (0.23) | |
| Return On Capital Employed | (0.20) | (0.21) | |
| Return On Assets | (0.17) | (0.17) | |
| Return On Equity | (0.55) | (0.58) |
Determining Snap's profitability involves analyzing its financial statements and using various financial metrics to determine if Snap is a good buy. For example, gross profit margin measures Snap's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Snap's profitability and make more informed investment decisions.
Snap's Earnings Breakdown by Geography
Evaluate Snap's management efficiency
Snap Inc has return on total asset (ROA) of (0.0766) % which means that it has lost $0.0766 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.4062) %, meaning that it created substantial loss on money invested by shareholders. Snap's management efficiency ratios could be used to measure how well Snap manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/30/2024, Return On Tangible Assets is likely to drop to -0.23. In addition to that, Return On Capital Employed is likely to drop to -0.21. At this time, Snap's Non Current Liabilities Total is relatively stable compared to the past year. As of 11/30/2024, Non Current Liabilities Other is likely to grow to about 208 M, while Total Current Liabilities is likely to drop slightly above 674.1 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.50 | 1.34 | |
| Tangible Book Value Per Share | 0.36 | 0.34 | |
| Enterprise Value Over EBITDA | (27.05) | (28.40) | |
| Price Book Value Ratio | 11.31 | 17.14 | |
| Enterprise Value Multiple | (27.05) | (28.40) | |
| Price Fair Value | 11.31 | 17.14 | |
| Enterprise Value | 19.7 B | 25.1 B |
Evaluating the management effectiveness of Snap allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Snap Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 0.995 |
Basic technical analysis of Snap Stock
As of the 30th of November, Snap has the Risk Adjusted Performance of 0.1099, semi deviation of 2.21, and Coefficient Of Variation of 747.33. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Snap Inc, as well as the relationship between them.Snap's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Snap insiders, such as employees or executives, is commonly permitted as long as it does not rely on Snap's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Snap insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Rebecca Morrow over a week ago Disposition of 11154 shares by Rebecca Morrow of Snap at 10.5464 subject to Rule 16b-3 | ||
Elizabeth Jenkins over three months ago Disposition of 9965 shares by Elizabeth Jenkins of Snap at 9.19 subject to Rule 16b-3 | ||
Michael Lynton over three months ago Disposition of 300133 shares by Michael Lynton of Snap subject to Rule 16b-3 | ||
Young Eric over a year ago Sale by Young Eric of 119112 shares of Snap | ||
Evan Spiegel over a year ago Sale by Evan Spiegel of 150000 shares of Snap | ||
Evan Spiegel over a year ago Sale by Evan Spiegel of 150000 shares of Snap | ||
Young Eric over a year ago Acquisition by Young Eric of 3744162 shares of Snap subject to Rule 16b-3 |
Snap's Outstanding Corporate Bonds
Snap issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Snap Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Snap bonds can be classified according to their maturity, which is the date when Snap Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US833034AM32 Corp BondUS833034AM32 | View | |
| SNAP ON INC Corp BondUS833034AK75 | View | |
| SNAP ON INC Corp BondUS833034AL58 | View |
Understand Snap's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Snap's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1099 | |||
| Market Risk Adjusted Performance | 0.5121 | |||
| Mean Deviation | 2.23 | |||
| Semi Deviation | 2.21 | |||
| Downside Deviation | 2.58 | |||
| Coefficient Of Variation | 747.33 | |||
| Standard Deviation | 3.23 | |||
| Variance | 10.42 | |||
| Information Ratio | 0.0912 | |||
| Jensen Alpha | 0.3147 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | 0.1141 | |||
| Treynor Ratio | 0.5021 | |||
| Maximum Drawdown | 21.74 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 4.41 | |||
| Downside Variance | 6.65 | |||
| Semi Variance | 4.89 | |||
| Expected Short fall | (2.50) | |||
| Skewness | 1.68 | |||
| Kurtosis | 7.1 |
| Risk Adjusted Performance | 0.1099 | |||
| Market Risk Adjusted Performance | 0.5121 | |||
| Mean Deviation | 2.23 | |||
| Semi Deviation | 2.21 | |||
| Downside Deviation | 2.58 | |||
| Coefficient Of Variation | 747.33 | |||
| Standard Deviation | 3.23 | |||
| Variance | 10.42 | |||
| Information Ratio | 0.0912 | |||
| Jensen Alpha | 0.3147 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | 0.1141 | |||
| Treynor Ratio | 0.5021 | |||
| Maximum Drawdown | 21.74 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 4.41 | |||
| Downside Variance | 6.65 | |||
| Semi Variance | 4.89 | |||
| Expected Short fall | (2.50) | |||
| Skewness | 1.68 | |||
| Kurtosis | 7.1 |
Consider Snap's intraday indicators
Snap intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Snap stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Snap Corporate Filings
F4 | 22nd of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Snap Stock media impact
Far too much social signal, news, headlines, and media speculation about Snap that are available to investors today. That information is available publicly through Snap media outlets and privately through word of mouth or via Snap internal channels. However, regardless of the origin, that massive amount of Snap data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Snap news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Snap relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Snap's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Snap alpha.
Snap Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Snap can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Snap Inc Historical Investor Sentiment
Investor biases related to Snap's public news can be used to forecast risks associated with an investment in Snap. The trend in average sentiment can be used to explain how an investor holding Snap can time the market purely based on public headlines and social activities around Snap Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Snap's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Snap and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Snap news discussions. The higher the estimate score, the more favorable the investor's outlook on Snap.
Snap Corporate Directors
| Joanna Coles | Independent Director | Profile | |
| Robert Murphy | Co-Founder, Chief Technology Officer, Director | Profile | |
| Alan Lafley | Independent Director | Profile | |
| Elizabeth Jenkins | Independent Director | Profile |
Additional Tools for Snap Stock Analysis
When running Snap's price analysis, check to measure Snap's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Snap is operating at the current time. Most of Snap's value examination focuses on studying past and present price action to predict the probability of Snap's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Snap's price. Additionally, you may evaluate how the addition of Snap to your portfolios can decrease your overall portfolio volatility.