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Snap: 11+ Million Reasons To Like

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Update - Oct. 29

Snap with another strong quarter. At $10, the stock trades like the social messaging play has no growth. 

  • Q3 Non-GAAP EPS of $0.08 beats by $0.03.
  • Revenue of $1.37B (+15.1% Y/Y) beats by $10M.
  • Daily Active Users increased 9% year-over-year to 443 million
  • Total time spent watching content increased 25% year-over-year.

Update - Sept. 19

Snap making a run after a solid Partner Event with a focus on AI and A/R glasses. The stock could quickly close the gap to $13. 

Finviz Chart

Originally posted on Sept. 8

  • Snap has fallen to multi-year lows despite strong sales growth and a promising subscription service, making it an undervalued investment below $9.
  • The social messaging company reported 850 million MAUs and 432 million DAUs, with Snapchat+ boosting subscriptions to 11 million.
  • The market is overly focused on volatile advertising revenue, ignoring Snap's potential $700 million in recurring subscription fees by the end of 2024.
  • SNAP stock trades at only 3x forward EV/S targets, significantly lower than peers like Meta and Pinterest, highlighting a substantial market disconnect.
In an odd move, Snap, Inc. (NYSE:SNAP) has fallen back to multi-year lows despite reporting strong sales growth in the last quarter. The social messaging company clearly isn't firing on all cylinders, but the market has completely ignored the progress of the business and the promise of a booming subscription service. My investment thesis remains ultra Bullish on the stock 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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