By
staff writer
April 17th, 2024
Per advertisement revenues, Snap is pointed as one of the potential beneficiaries of the boycott on the ads of Facebook.
The shares of American camera and social media company Snap Inc (NYSE: SNAP) closed Wednesday’s trading session with a 3.59% surge to $52.20 per share. The social media firm that runs the app Snapchat has continued to gain massive support from analysts who are projecting better growth in 2021 for the company’s shares.
According to a report from Seeking Alpha, SNAP shares which ended 2020 with a 163% gain have the tendency for more implosive growth in the coming days as the firm releases its fourth-quarter earnings report, figures that are expected to beat analyst’s estimates. The ongoing rally in SNAP shares, though in tandem with the overall market boom, is happening following the inauguration of Joe Biden as the 46th President of the United States.
SNAP’s Edge Over Competitors
The social media world is ever-evolving with unique innovations being rolled out on a daily basis. While Snap’s Snapchat remains amongst the most innovative platforms we have today, the platform still has a lot of other competitors to battle in its journey to sustained productivity.
One of these supposed competitors is TikTok, the short video media platform that received increase patronage in the wake of the pandemic last year. While Snap has shredded off the threat of competition from TikTok as the Chinese originated platform remains one of its biggest advertisers, the obvious similarities between the two platforms may present a basis for competition later on.
Per advertisement revenues, Snap has also been pointed as one of the potential beneficiaries of the boycott on the ads of Facebook Inc (NASDAQ: FB), and a target effort to present itself attracted to advertisers may catalyze the leverage the firm already has.
The report also noted the fact that SNAP has a lower user base in certain emerging markets like India than Facebook and Twitter Inc (NYSE: TWTR) and a direct effort to wade into these regions will further consolidate its numeric growth drive and a corresponding boost to revenue. At the time of writing, SNAP shares are trading up 1.53% in the pre-market with each share worth $53.00.
Analysts Bullish on SNAP Shares
An earlier report by Coinspeaker shows a positive revision on SNAP shares by a MoffettNathanson analyst, Michael Nathanson. Nathanson revised the shares to buy from neutral and also upgraded his price target for the company from $39 to $57 per share.
“We believe Snap results will surprise on the upside, as we are 15% above consensus 2024 revenue and 30% above consensus 2021 non-GAAP operating income. We are not revising our Snap estimates [now], but we continue to project strong revenue growth and profitability going forward,” he noted, adding that the share price upgrade is in due consideration of the current market realities.
The capacity for SNAP shares to grow also takes its backing from the development of Augmented Reality lenses which are billed to help the firm generate over $4 billion in e-commerce revenue within over next few years as virtual shopping experience now forms the clarion call for e-commerce outfits.