Why You Should Buy The Dip In Snap

Summary:

  • Snap’s stock dropped significantly, creating a buying opportunity.
  • Snap trades below three times its forward revenue projections, making it relatively cheap compared to competitors.
  • Despite a minor sales miss, Snap provided strong earnings and guidance, showing growth potential and profitability prospects.
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Luis Alvarez

I discussed buying Snap Inc. (NYSE:SNAP) when its stock dropped to around the $10 range last time, and I think we should take a close look at Snap again. Its market cap has cratered around

Year 2024 2025 2026 2027 2028 2029 2030
Revenue Bs $5.4 $6.4 $7.3 $8.1 $9 $9.9 $11
Revenue growth 17% 18% 14% 11% 11% 10% 10%
EPS $0.35 $0.65 $0.85 $1.10 $1.38 $1.65 $1.95
EPS growth 288% 86% 31% 29% 25% 20% 18%
Forward P/E 25 27 29 32 31 30 28
Stock price $16 $23 $32 $44 $51 $59 $66


Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNAP, META either through stock ownership, options, or other derivatives. 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.

I am long a diversified portfolio with hedges.

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.


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