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Snap: Next Move Higher

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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.

Finviz Chart

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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