Is Snap Stock a Good Investment?

Snap Investment Advice

  SNAP
To provide specific investment advice or recommendations on Snap Inc stock, we recommend investors consider the following general factors when evaluating Snap Inc. This will help you to make an informed decision on whether to include Snap in one of your diversified portfolios:
  • 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 Hold
Our advice tool can cross-verify current analyst consensus on Snap and to analyze the firm potential to grow in the current economic cycle. To make sure Snap Inc is not overpriced, please validate all Snap fundamentals, including its cash per share, number of employees, and the relationship between the revenue and cash flow from operations . Given that Snap Inc has a number of shares shorted of 72.07 M, we advise you to double-check Snap Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

GoodDetails

Volatility

Somewhat reliableDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

About AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

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 had very high historical volatility over the last 90 days
Snap Inc has high likelihood to experience some financial distress in the next 2 years
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 aol.com: Man jailed for three years over Snapchat sextortion

Snap Quarterly Liabilities And Stockholders Equity

7.59 Billion

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
2023-12-310.060.070.0116 
2020-04-21
2020-03-31-0.07-0.08-0.0114 
2019-10-22
2019-09-30-0.05-0.040.0120 
2023-07-25
2023-06-30-0.04-0.020.0250 
2023-04-27
2023-03-31-0.010.010.02200 
2021-02-04
2020-12-310.070.090.0228 
2020-02-04
2019-12-310.010.030.02200 
2019-04-23
2019-03-31-0.12-0.10.0216 

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
State Street Corp2024-06-30
13 M
Ossiam2024-06-30
11.3 M
Geode Capital Management, Llc2024-06-30
11.1 M
Two Sigma Advisers, Llc2024-06-30
8.3 M
Millennium Management Llc2024-06-30
8.3 M
D. E. Shaw & Co Lp2024-06-30
M
Tb Alternative Assets Ltd.2024-09-30
M
Two Sigma Investments Llc2024-06-30
6.9 M
Ubs Asset Mgmt Americas Inc2024-06-30
6.2 M
Fmr Inc2024-06-30
206.8 M
Vanguard Group Inc2024-06-30
98.9 M
Note, although Snap's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Snap's market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 20.14 B.

Market Cap

23.9 Billion

Snap's profitablity analysis

Last ReportedProjected 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)
The company has Profit Margin (PM) of (0.18) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.13) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.13.
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 11/12/2024, 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 11/12/2024, 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 ReportedProjected 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 Value19.7 B25.1 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 12th of November 2024, Snap has the Risk Adjusted Performance of 0.1234, coefficient of variation of 657.14, and Semi Deviation of 2.03. 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.

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.

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.

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
4th 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 time-series forecasting models is one of many Snap's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Snap's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

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 ColesIndependent DirectorProfile
Robert MurphyCo-Founder, Chief Technology Officer, DirectorProfile
Alan LafleyIndependent DirectorProfile
Elizabeth JenkinsIndependent DirectorProfile

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.