IB Net Payout Yields Model

Snap: 7 Million Reasons To Buy The Dip

Update - Apr. 17, 2024

Congress spends a lot of time talking about a TikTok ban, but it just seems like talk. Snap is very intriguing here at $10 based on Snapchat+ with an outlier potential for the ban. 

-Snapchat surged during Wednesday trading following news that the proposed bill forcing TikTok to divest from ByteDance or face a U.S. ban might get fast tracked.

-House Speaker Mike Johnson (R-LA) plans to include the TikTok bill in a fast-track package that includes aid for Ukraine and Israel, Bloomberg reported Wednesday.

Finviz Chart

Original article posted on March 27

  • Snap Inc.'s Q1 '24 guidance for DAUs and revenue fell slightly below consensus, but disappointed investors missed the progress on returning towards 15% growth.
  • Snapchat+ is growing towards the 14 million target for the end of 2024 with an updated number for the end of Q1 providing a catalyst.
  • The stock only trades at 4x EV/S targets, a discount to social media peers.
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Snap Inc. (NYSE:SNAP) remains the most volatile player in the social media space. The Snapchat operator soared on exiting subscription news and a bounce back in sector stocks, yet Snap plunged back when reporting Q4 '23 numbers that missed the high-end expectations. My investment thesis remains ultra Bullish on the stock, which is down ~$6 from the yearly highs while subscriber growth continues to bolster a more positive long-term view.

Read the full article on Seeking Alpha. 

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


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