On Dec. 29, SNAP stock rose by 6.2 percent, while the S&P 500 fell by 0.2 percent. The stock was up $2.97 from its previous closing price of $48.26 on a volume of 49,394,285 shares. Over the past year, the S&P 500 has risen by 15.4 percent, while SNAP stock has gained 213.7 percent. Is SNAP stock a buy or sell at this price?
On Dec. 29, Heath Terry of Goldman Sachs raised his target price on SNAP stock from $47 to $70. However, the analyst reiterated his buy rating on the stock. The new target price represents a 12-month return potential of 45 percent from the closing price of $48.26 on Dec. 28. Terry expects SNAP to achieve faster sales growth in the fourth quarter.
Is SNAP stock Snapchat?
Snap stock trades on the NYSE under the ticker symbol “SNAP.” Snap is a camera and social media company based in California. The company has developed several technological products and services like Spectacles, Snapchat, and Bitmoji. The company was named Snapchat Inc. upon its inception. However, the name changed to Snap Inc. in 2016.
SNAP on Stocktwits
SNAP stock has become a major talking point on social media platforms. An investor named Ivyleagueinvestor22 on Stocktwits thinks that the stock prices of social media companies like Snap, Twitter, and Facebook, will likely fall in 2021. The investor added that once everyone is vaccinated and schools reopen, social media sector stocks will crash by nearly 30 percent.
SNAP doesn’t pay dividends
Currently, SNAP doesn’t pay dividends.
SNAP’s stock forecast
As of 7:00 a.m. ET in pre-market trading on Dec. 30, SNAP stock was up by about 0.7 percent at $51.58. The stock has fallen by 1.7 percent in the last five days, while it has risen by 213.7 percent in the last year. The stock is trading 6.4 percent below its 52-week high of $54.71 and 549.3 percent above its 52-week low of $7.89.
According to estimates compiled by CNN, analysts' median target price is $40 for SNAP, which is 21.9 percent below its current stock price. Among the 39 analysts tracking SNAP, 26 recommend a buy, 10 recommend a hold, and three recommend a sell. The highest target price of $70 is 36.6 percent above the stock's current price, while the lowest target price of $15 is 70.7 percent below the stock's current price.
SNAP stock looks like a buy
SNAP stock looks like a buy based on its strong growth outlook. In the third quarter, the global DAUs (daily active users) increased by 18 percent year-over-year to 249 million due to increased user engagement amid the coronavirus pandemic. Snap’s user base is increasing despite competition from Facebook and Twitter. Snap will likely benefit from product innovations and ad partnerships that the social media company has announced in the last three months.