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Snap: Next Move Higher

Update - Dec. 16

A defacto ban could slowly squeeze TikTok out of the US. Snap shouldn't be trading at the lows on this news. 

-News is heating up on the "TikTok ban" front, with House Speaker Nancy Pelosi weighing in on whether government employees should be able to use the Chinese-owned social app even as regulation of the short-video sensation ramps up in the federal and state governments.

-After mulling the issue Thursday, Pelosi on Friday came out in support of including a ban of TikTok on government devices in the high-stakes government spending bill headed for a House vote, Punchbowl News reported.

-It would pair with ban legislation that unanimously passed the Senate Wednesday, amid growing concerns that TikTok and parent ByteDance (BDNCE) could share data on American users with China.

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Original article published on Nov. 28 

  • Snap has held $10 for months now, despite analysts turning less bullish on the stock.
  • The social media company slashed $500 million in annual costs to improve the profit picture back towards 2021 levels, despite revenue weakness.
  • The stock is cheap at 15x '24 EBITDA targets, especially with a potential subscription catalyst.
The social media space is so tough now that Elon Musk willingly offered $44 billion for Twitter and Snap (NYSE:SNAP) is only worth $16 billion. The stock is unloved by analysts, yet Snap has traded around $10 for 4 months now. My investment thesis remains Bullish on the social media stock following a 31% rally after the prior call when analysts were fleeing ship.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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