Snap: Pump The Brakes
Snap reported improving revenue and user trends, but investors need to dig further into the financials.
The company hasn't figured out a way to reduce cash burn to acceptable levels.
The stock trades at a wild multiple of sales with the stock now worth nearly $30 billion.
Investors need to be careful following the analyst crowd.
Snap (SNAP) surged nearly 50% the day following Q4 results that beat analyst estimates. The important numbers though showed no significant improvements warranting a sudden positive change of opinion in the stock suggesting that investors need to hit the brakes on this rally.
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