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Snap Stock Up 7% on Monday, Credit Suisse Raised Its Price Target from $39 to $59

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by Steve Muchoki · 2 min read
Snap Stock Up 7% on Monday, Credit Suisse Raised Its Price Target from $39 to $59
Photo: Depositphotos

With the coronavirus still being a direct threat to our normalcy, Snap stock remains with an upper advantage of rallying further in the coming quarters.

Snap Inc (NYSE: SNAP) stock closed yesterday trading at $56.85, up 7.39%. Meanwhile, Snap stock price had continued with the upsurge during the pre-market session as they were up approximately 1.41%.

The spike in Snap stock has been attributed to several fundamental factors among them the ongoing coronavirus pandemic. Besides, Credit Suisse raised its price target on the stock from $39 to $59 with the company set to report its fourth-quarter earnings on Thursday.

Snap stock has significantly benefited from the stay-at-home order since the onset of the pandemic. Notably, Snap stock jumped approximately 199.53% last year, and have added over 13% year-to-date. In addition, Snap stock has rallied over 38%, and 13% in the past three months and one month respectively according to MarketWatch.

Snap Stock and Its Price

With the coronavirus still being a direct threat to our normalcy, Snap stock price remains with an upper advantage of rallying further in the coming quarters. Mind you, despite several coronavirus vaccines having been approved for emergency use by the United States FDA, none of them has been cleared for mass use.

Snap continues to experience heightened competition in the video-sharing industry, particularly from platforms like TikTok, and also Instagram. However, with a market capitalization of approximately $78.88 billion, Snap is well-positioned to compete further with other companies in its field.

Despite the company enjoying the current market climate, not all Wall Street analysts agree with its future growth prospects. As a result, a survey done by MarketWatch indicates that Snap stock received an average of Over rating from 40 ratings.

According to a report by Zacks Investment Research, analysts expect Snap to post $846.00 million in sales for the current quarter. The company reported sales of $560.89 million in the same quarter last year. As a result, if the company meets the expectations, it would reciprocate to a positive year-over-year growth rate of 50.8%. On a full-year basis, analysts estimate the company to report sales of $2.45 billion.

During its third-quarter earnings results, Snap reported $0.01 earnings per share, with a revenue of $678.67 million. With the bright future growth prospects, JPMorgan Chase & Co raised its price target on Snap stock from $42.00 to $60.00 and gave the stock an “overweight” rating.

With the unpredictable nature of the market due to the ongoing coronavirus crisis, Snap has been improving its services to maintain more and attract more customers. Recently, Snap announced that it has acquired StreetCred, a New York City-based location data startup.

Business News, Market News, News, Stocks, Wall Street
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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