Snap is gaining ahead of earnings (SNAP)


Snap stock price

Snap Inc. is scheduled to report second-quarter earnings after the close of markets on Tuesday.
The stock is down 45% since its IPO in March 2017, and Wall Street thinks it will keep sinking.
Follow Snap’s stock price in real-time here.

Shares of Snap were up more than 2% in trading Tuesday ahead of the social media company’s second-quarter earnings report after the closing bell.

Wall Street analysts expect the company to post an adjusted loss per share of $0.183 for the quarter ended June 30, on revenues of $249.82 million, according to Bloomberg.

Public for a little over a year, Snap has fallen considerably off its highs of more than $20 in 2017. The Snapchat parent company now trades at around $13, or about 45% below its all-time closing high. Analysts polled by Bloomberg think it will continue to decline, and they give it an average price target of $11.66.

“From a bigger-picture perspective, the primary area of concern from marketers and investors alike has been the lack of data Snapchat offers for targeting purposes,” Mark Kelley, an analyst at Nomura Instinet, said in a recent note in July initiating coverage on Snap.

“But we wonder if the new regulatory environment (GDPR, or General Data Protection Regulation), with its global spread inevitably limits the type, amount, and scale of data that companies are able to store and offer to marketers.”

Kelley has a $13 price target for Snap, and says he will remain on the sidelines for now until meaningful growth shows up in the financials.

“If the fundamentals do improve, Snap should benefit from its exposure to the fastest growing subsegments of digital advertising—digital/social video—which likely approaches $80 billion globally in 2020 (total digital video, including Social),” he said.

Shares of Snap are down 46% since its initial public offering in March …read more

Source:: Business Insider

      

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