Positive reviews for the company have been consistently growing.
A select group of stocks managed to significantly outperform the market on both Wednesday and Thursday. Among these high performers was the social media company Snap (SNAP 4.14%), which saw a notable increase on the second-to-last day of the trading week. Without releasing any new information, Snap’s stock rose more than 4% on a day when the S&P 500 index gained 1.7%, influenced by an analyst’s positive assessment of the company’s potential.
Analyst Reaffirms Buy Recommendation
Two days following Snap’s partner summit, which introduced several new innovations, another analyst reiterated his favorable opinion of the company.
Alan Gould from Loop Capital, before the market opened, shared his analysis of both the summit and the social media company’s future prospects. Gould, known for his optimistic stance on Snap, maintained his buy recommendation and set a price target of $14 per share.
In his latest research note, Gould mentioned that the event did not alter his views on Snap’s potential. However, he found several pieces of information from the company’s management to be promising. Notably, the increase in monthly average users (MAUs), a crucial metric in the social media industry, stood out. From the previous year’s summit to the 2024 event, Snap’s MAUs grew by 100 million, reaching 850 million.
Revenue Streams and Future Potential
Gould also expressed confidence in a largely overlooked segment of Snap’s business, its augmented reality (AR) glasses, though he anticipates that it will take considerable time for this opportunity to be fully realized. Additionally, he highlighted the potential growth from Snap’s content and ads unification efforts, along with advancements in app install ads, which he believes will drive direct response revenue.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.