Snap Inc. (SNAP) – Get report Shares rose higher on Tuesday after Goldman Sachs analysts raised their price target on the message maker to the highest on Wall Street.
Goldman analyst Heath Terry maintained its buy-in on the stock, but raised its price target by $ 23 to $ 70 a share, the highest on Wall Street, citing a number of technological innovations and product partnerships that are driving revenue growth off the street can accelerate. forecasts.
Snap itself did not want to give revenue for the current quarter when it published street-beating earnings in the third quarter on October 20, due to the greater uncertainty over the pandemic, but noted that ” revenue growth from year to year year from 47% to 50% is achievable ” if holiday season ads keep up with previous trends.
‘Snap’s Spotlight product, new advertising campaign goals and bid types, and the Unity partnership, in particular the inclusion of Unity Ads in the Snap Audience Network (SAN), have the potential to promote further momentum in engagement growth and valuable value to advertisers to offer, ‘Terry said.
“In addition, our recent ad checks as well as third-party data indicate that it is performing better than the company’s initial guidelines for 4Q, an acceleration we believe is sustainable after the current quarter.”
In Tuesday’s early trading, the stock is up 11.2% above $ 53.70 each, which would increase its six-month gain to around 130%. Snap traded a high of $ 54.71 each on Dec. 17.
Snap shares first traded on the Nasdaq on March 2, 2017 at $ 25 per share. The stock then tumbled to below $ 5 per share in December amid unequal efforts by co-counder and CEO Evan Spiegel to promote the signature-messaging app on older users at the same time, while its time-spirited below well-known fans are retained.
Since 2019, however, the stock has been a continuous run that added nearly $ 70 billion in value to the Santa Monica, California-based technology group, as it added more users and attracted more advertisers to its Snapchat platform, a lot influential social media tool for teens and young adults.
Snap’s third-quarter revenue rose 52% year-on-year, thanks in part to its Facebook boycott in July (FB) – Get report by major advertisers, with daily active users rising 18% from the same period last year to 249 million.
On a adjusted basis, the group also reduced earnings by one cent per share in a third quarter, compared to a loss of 4 cents per share last year and the prediction of the Street Consensus on a loss of 5 cents per share.