IB Net Payout Yields Model

Snap: 5 Million Reasons To Own

Update - Dec. 12, 2023
Snapchat+ continues lining up the subs sending Snap to yearly highs. 

-Snap (NYSE:SNAP) on Tuesday said its paid Snapchat+ subscription service now had more than 7M subscribers, and that it was rolling out new artificial intelligence (AI) based features for users.

-The company had targeted 10M subscribers for the service when it had launched Snapchat+ in July last year. It is now more than halfway to that mark in less than 18 months. Snap in September had said the service had surpassed 5M users.

Finviz Chart

Update - Oct. 31, 2023

Pinterest reported a great quarter after the close yesterday. The social imaging site appeared to suggest any advertising pause from the Gaza conflict had already restarted. Snap should be above $10 already. 

Finviz Chart

Update - Oct. 25, 2023

Snap originally soared on a surprise profit and a return to sales growth during Q3. The social media stock is the cheaper in the sector and still trades near multi-year lows. 

-Q3 Non-GAAP EPS of $0.02 beats by $0.07.
-Rev of $1.19B (+5.3% YoY) beats by $80M.
-DAUs were 406M, up 43 million, or 12% YoY

Q4 Guidance
-DAUs of 410 to 412M
-Rev. of $1,320 to 1,375M, up 2% to 6%
-Adj. EBITDA between $65 to $105M

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Original article posted on Oct. 2

  • Snap's subscription service, Snapchat+, offers an opportunity for the company to build a recurring revenue stream and break away from the competitive advertising market.
  • Snap already generates $20 million per month in recurring revenues from Snapchat+ and has the potential to increase the monthly fee over time.
  • With solid user growth and the potential for the subscription service to become a significant part of the business, investors should consider buying Snap below $9.
Despite constant user growth, Snap (NYSE:SNAP) trades right back at the Covid lows. The social messaging platform has a booming subscription service, but the market has lost interest in such stocks. My investment thesis is ultra Bullish on this stock here below $9.

Read the full article on Seeking Alpha. 

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


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