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Snap’s Technical Indicators: A Peer Comparison

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MACD

On May 5, 2017, Snap’s (SNAP) seven-day MACD (moving average convergence divergence) was 0.97. On the same date, its peers Amazon (AMZN), Alibaba (BABA), eBay (EBAY), and Square (SQ) reported MACD readings of ~15.7, ~2.4, -0.08, and 0.45, respectively. The MACD is the difference between a company’s short-term and long-term moving averages.

For the last 14 days, Snap reported a relative strength index (or RSI) of 82 compared to the respective RSI readings of 71, 68, 40, and 77 reported by Amazon, Alibaba, eBay, and Square. Generally, if the RSI is above 70, it indicates that the stock is overbought. An RSI below 30 suggests that the stock has been oversold.

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Median target estimate

A price target refers to a projected price level for a stock set by an adviser or investment analyst. If achieved, the price target could yield the highest level of returns from the investment. Snap’s (SNAP) price target for this quarter has been set at $24.

50-day moving averages

On May 5, 2017, Snap was trading ~16.0% above its 50-day moving average. Compared to its peers, Amazon traded ~6.0% above its 50-day moving average on the same date, and Alibaba traded ~6.5% above its 50-day moving average.

On May 5, eBay traded ~1.5% below its 50-day moving average, and Square traded ~16.4% above its 50-day moving average.

Market capitalization

Snap’s (SNAP) market cap was ~$27.9 billion at the close of the May 5 trading session. Market capitalization (market cap) represents the market value of a company at a particular time, which is calculated as shares outstanding of a publicly traded company, multiplied by share price.

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