On May 1, 2023, Snap Inc. made an exciting announcement – the company has hired two former Meta Platforms employees to expand its advertising business! Patrick Harris has been appointed as the Senior Vice President of Partnerships, while David Sommer has been named Head of Verticals. Harris will be driving personalized use of the company’s technology, while Sommer will be responsible for working with consumer packaged goods companies to use Snap’s tools.
Sommer most recently served as the Chief Commercial Officer at Fetch, a shopping rewards technology company, after spending 11 years at Meta. This is great news for Snap, as the company has struggled to jump-start its advertising business after a slowdown in marketer spending and changes to Apple’s privacy policies made digital ads less effective.
However, Snap has turned to additional revenue opportunities, such as selling augmented reality. The company has also introduced Goal Based Bidding by Objective, which allows advertisers to deliver as many ads as possible to Snapchatters based on a specified cost per 1,000 impressions.
Despite Snap’s advertising slump, which is expected to extend into the second quarter of 2023, Stifel analyst Mark Kelley is “selectively positive” about the digital advertising sector due to the potential for gains by companies in the sector. It seems that Snap is making the right moves to stay ahead of the curve and keep its advertising business thriving.
SNAP Inc. Stock Performance and Financial Analysis on May 1, 2023
On May 1, 2023, SNAP Inc. (SNAP) opened at 8.78, slightly higher than the previous close of 8.71. Throughout the day, the stock experienced a day’s range of 8.53 to 8.93, with a volume of 28,534,501 shares traded.
SNAP’s market capitalization was reported at $13.9 billion, with earnings growth of -183.99% in the previous year, followed by a positive growth of +16.57% in the current year. The company is expected to continue growing with a forecasted earnings growth of +13.80% over the next five years. The revenue growth in the last year was reported at +11.78%.
The P/E ratio for SNAP was not available, but the price/sales ratio was 3.13, and the price/book ratio was 5.31. These ratios suggest that the stock may be slightly overvalued based on its financial performance.
In terms of performance compared to other technology services companies, SNAP saw a positive change of +1.62% on May 1, 2023, while TW Tradeweb Markets Inc. also saw a positive change of +1.14%. TMET Tencent Music Entertainment Group and MTCH Match Group Inc. both experienced negative changes of -2.56% and -2.57%, respectively. PINSPinterest Inc. saw the largest decrease in stock price with a change of -4.96%.
SNAP’s next reporting date is scheduled for July 25, 2023, with an EPS forecast of -$0.24 for this quarter.
SNAP operates in the packaged software industry and is headquartered in Santa Monica, California.
Overall, SNAP’s performance on May 1, 2023, was relatively stable, with a slight increase in stock price and moderate trading activity. The company’s financial performance and forecasted growth suggest that it may be a viable investment option for those interested in the technology services industry. However, the slightly overvalued ratios may indicate caution for those considering investing in the company.
Snap Incs Q2 Earnings Report: Analysts Hold Stock as User Base Grows to 280 Million
Snap Inc, the parent company of Snapchat, opened at $8.60 on May 1, 2023, with a median target of $9.00 from 30 analysts. The consensus among 41 investment analysts is to hold stock in Snap Inc. The company is set to report Q2 earnings on July 25, 2023, with an expected EPS of -$0.24 and sales of $1.1 billion. Snap Inc’s user base has grown to 280 million daily active users, and the company has expanded beyond Snapchat with the launch of Spectacles and the acquisition of WaveOptics. Warren Buffett’s Berkshire Hathaway disclosed a $500 million stake in Snap Inc in March 2023.