Snap Inc. (SNAP) – Get the report shares rose on Tuesday after analysts at Goldman Sachs raised their price target for the highest-level messaging app maker on Wall Street.
Goldman analyst Heath Terry maintained his stock buy rating but raised its target price by $ 23 to $ 70 a share, the highest on Wall Street, citing “a series of technological innovations and partnerships. products ”that could accelerate revenue growth beyond Street forecasts.
Snap itself declined to provide guidance on revenue for the current quarter when it posted earnings in the third quarter on Oct. 20 due to higher pandemic uncertainty, but noted that “the annual revenue growth of 47% to 50% is achievable ”if the advertising in the holiday season is maintained at previous trends.
“The Spotlight Snap product, new ad campaign goals and types of bids, and the Unity partnership, especially the inclusion of Unity Ads in the Snap Audience (SAN) network, have the potential to further drive engagement and deliver a valuable scale for advertisers, “Terry said.
“In addition, recent ad verifications as well as third-party data suggest superior performance over the company’s initial 4Q guidance, which we believe is sustainable beyond the current quarter.”
Snap shares were up 11.2% higher at the start of trading on Tuesday to change hands at $ 53.70 each, a move that would extend the stock’s six-month gain to about 130%. Snap traded at an all-time high of $ 54.71 each on December 17th.
Snap shares were first traded on the Nasdaq on March 2, 2017 at $ 25 per share after the launch of the IPO at $ 17 each. Shares then plummeted below $ 5 a share in December amid uneven attempts by co-financier and CEO Evan Spiegel to simultaneously increase the app’s signature messaging app to older users, while still keeping pace. among supporters of celebrities.
However, since 2019, the stock has been running uninterrupted, adding nearly $ 70 billion worth to the Santa Monica, Calif. Technology group, as it has added more users and attracted more advertisers to the platform. its Snapchat, an extremely influential social network. media tool for teen and young users.
Snap’s third-quarter revenue rose 52 percent from last year, due in part to the July Facebook boycott (FB) – Get the report by key advertisers, with daily active users up 18% from the same period last year to 249 million.
On an adjusted basis, the group also pushed in a third quarter profit of one penny per share, compared to a loss of 4 cents per share last year and the consensual street forecast of a loss of 5 cents per share .