IB Net Payout Yields Model

Snap Up More Shares

Update - February 6, 2024

Q4 numbers were solid, but the market isn't happy. Snap is down some 30% after hours despite guiding towards Q1 revenue growth of up to 15%. The stock is a bargain on massive weakness due to the strong move towards subscriptions. 

-Q4 Non-GAAP EPS of $0.08 beats by $0.02.
-Rev of $1.36B (+5% Y/Y) misses by $20M.
-DAUs increased 10% year-over-year to 414 million

Guidance
Rev of $1,095 million to $1,135 million vs $1.12B consensus, implying YoY growth of 11% to 15%.

-Snapchat+, our subscription service that offers exclusive, experimental, and pre-release features grew from 2 million to 7 million subscribers in 2023, and exited the year with an annualized revenue run rate of $249 million.

Original article published on Dec. 21, 2023

  • Snap Inc. shares have doubled in the last quarter and have significant upside potential.
  • The Snapchat+ subscription service has seen explosive growth, with the potential to quickly surpass $500 million in annualized revenue in early 2024.
  • Snap's goal for 2024, including 14 million Snapchat+ subscribers and 20% ad revenue growth, appears achievable.
  • The stock now trades closer to social media sector EV/S multiples, but Snap has substantial upside to growth estimates for 2024 to fuel a further rally.
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Snap Inc. (NYSE:SNAP) shares have doubled in the last quarter, and the stock likely has much more upside. A lot of small and mid-cap stocks were crushed during the last couple of years, providing substantial upside to just return to more normal valuations. My investment thesis remains Bullish on the social messaging stock, though investors clearly missed an opportunity to own Snap at far lower levels.

Read the full article on Seeking Alpha. 

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

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