Snap: 25 Million Reasons To Love

Summary:

  • Snap trades near recent lows despite record revenues and a booming subscription business.
  • The company has innovation in AR and AI, including Spectacles and My AI chat, driving user engagement and revenue growth, yet the market remains skeptical.
  • Snapchat+ subscription service, with 12 million subscribers, could reach $1.5 billion in run rate revenue exiting 2025, significantly boosting Snap’s financial outlook.
  • The stock’s forward EV/S multiple makes Snap the cheapest stock in the social media space.

Golden 25M isolated on white background. 25M 3d. Thank you for 25 Million followers 3D gold. 3D rendering

Vivek Vishwakarma/iStock via Getty Images

While the market has cruised to all-time highs, Snap, Inc. (NYSE:SNAP) actually trades closer to the lows after being public for nearly a decade. The social messaging company is even reporting record revenues


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SNAP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


If you’d like to learn more about how to best position yourself in undervalued stocks mispriced by the market to start December, consider joining Out Fox The Street.

The service offers a model portfolio, daily updates, trade alerts and real-time chat. Sign up now for a risk-free 2-week trial to started finding the best stocks with potential to double and triple in the next few years.

Leave a Reply

Your email address will not be published. Required fields are marked *