Snap has risen 4.8% this month
Snap (SNAP) has had a blockbuster year, rising 104.5% as the company’s steps toward revival have wowed investors. SNAP has been resilient this month despite headwinds impacting broader markets, indicating how much things have changed over the past five months.
Snap stock rose 0.95% yesterday while the tech-heavy NASDAQ Composite fell 0.8%. One factor behind SNAP’s resilience could be its minimal exposure in China, where the market is dominated by other platforms such as Tencent’s WeChat and TikTok. Unlike Snap stock, Alphabet’s Google, Facebook (FB), and Twitter have fallen in May, despite their minimal footprint in China.
Snap takes steps toward revival
Snap has announced several new features, including its own gaming platform, partnerships with apps such as Tinder, and a re-engineered Android app. These moves have all warmed investors to the stock.
Tthe company also added two million daily active users in the first quarter of 2019 after three quarters of flat-to-negative growth. However, the stock does look expensive at the moment, considering that it is still seeing losses. Whereas SNAP is trading at 7.2 times its book value, Facebook is trading at 6.0 times its book value.