Stock in Focus: Snap Inc. (SNAP)

Company Profile:

Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

Recent News:

For the quarter ended September 30, 2019, SNAP reported revenue increased 50% to $446 million in Q3 2019, compared to the prior year. Net loss improved $98 million to $(227) million in Q3 2019, compared to the prior year.

Social media company Snap Inc is more “stable” today than it was a year ago, according to JMP Securities. Snap Could Post $2.4B In 2020 Revenue. Snap’s near-term outlook is much clearer than before, and a higher revenue estimate for 2020 and beyond justifies buying the stock, the analyst said.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SNAP’s strengths can be seen in its better growth, strong profitability and robust solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator and MACD. The RSI stands at 54.98 with positive bias. We rate Snap Inc. (SNAP) a STRONG BUY.