Quick Survey of Snap Stock after Its 2Q17 Earnings
On August 31, Snap (SNAP) was trading 19.4% below its 100-day moving average. Among its peers, Twitter (TWTR) traded 20.8% above its 100-day moving average, and Facebook (FB) traded 10.2% above its 100-day moving average on the same day.
On the same day, Alphabet (GOOG) traded 1.2% above its 100-day moving average, and eBay (EBAY) traded 3.2% above its 100-day moving average. Snap’s stock price is currently ~3.3% below its 50-day moving average, and it is ~3.6% above its 20-day moving average.
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Of the 37 analysts covering Snap, 11 gave it a “buy” recommendation, seven recommended a “sell,” and 19 recommended a “hold.”
Relative strength index
For the last 14 days, Snap (SNAP) reported an RSI (relative strength index) of 72 compared to 70, 60, 63, and 64 recorded by Twitter, Facebook, Alphabet, and eBay, respectively, within the same period. The RSI measures the speed and change at which stock prices move.
Inside Snap’s EPS and sales numbers
Snap’s EPS (earnings per share) for 2016 came on total sales of $625.0 million, which grew 291% annually. Sales for this year are expected to expand to ~$891.6 million in 2017 and to ~$1.7 billion next year.
Analysis of Snap’s price and book value figures
Snap is trading at a price-to-book value of ~5.0x. The stock’s price-to-sales value is 27.8x, and its price-to-estimated sales value for 2017 is 19.5x.
Snap’s EV (enterprise value) is $14.6 billion, which indicates that the company has a current EV-to-trailing-12-month-sales multiple of 23.3x. Its EV-to-projected-sales multiple for 2017 is 16.3x, and its EV-to-estimated-sales multiple for 2018 is 9.0x.
Where do Snap’s EBITDA and ratios stand?
Snap’s EBITDA1 margin for 2016 was -476%, which yielded EBITDA of -$2.9 billion.
For 2017, Wall Street expects the company’s EBITDA to reach $0.72 billion, implying that this year’s EBITDA is expected to fall 16%.
Snap was the fourth-largest global software player in terms of market capitalization at $17.4 billion. Its peers have the following market cap levels:
- Twitter (TWTR): ~$12.5 billion
- Facebook (FB): ~$505.5 billion
- Alphabet (GOOGL) ~$663.2 billion
- eBay (EBAY): ~$38.7 billion
- earnings before interest, tax, depreciation, and amortization ↩