![]() We expect Snap’s revenues to rise by 47% to $3.7 billion in 2021, increasing its revenue per share to $2.53 which coupled with the P/S multiple of 25.2x will lead to Snap’s valuation of around $64, which is close to its current market price. Revenue and earnings were driven by continuous increase in Daily Active users. The company has seen rising revenues and improving earnings over recent years.ĭuring the Covid-19 crisis, Snap saw revenue rise by 46% in 2020 to $2.5 billion, while earnings per share improved to -$0.65 compared to -$0.75 in the previous year. The stock grew from $17 at the end of 2019 to near $67 now, compared to the S&P 500 which has gained 20% since the end of 2019. Snap is a camera and social media company which has developed a number of technological products and services, namely Snapchat, Spectacles, and Bitmoji. This will increase its revenue per share to $2.66 which coupled with the P/S multiple of 29x will lead to Snap’s valuation of around $77, which is 20% above its current market price.Īfter rallying 298% since the end of 2019, Snap’s stock has reached its near term potential. We expect Snap’s revenues to rise by 61% to $4 billion in 2021 as more and more content offerings gain traction across countries. They also launched Spotlight in three new countries-India, Mexico, and Brazil-making it live in a total of 14 countries. In March, over 125 million Snapchatters used Spotlight, a platform surfacing the most entertaining Snaps from the community. The company continued to experience traction in its content offering. DAU’s were 280 million in Q1 2021, an increase of 51 million (22% y-o-y). For Q1 2021 the company recorded a revenue rise of 66% y-o-y to $770 million while the operating cash flow improved by $131 million to $137 million. The stock has risen gradually since the Q1 2021 earnings, bar a small dip in first half of May which was in sync with the overall market. Snap’s stock has gained 288% since the end of 2019 and 26% since the end of 2020 to $63 currently. The Spotlight platform that surfaces the most entertaining Snaps from the community has continued to gain traction as daily active users grew 49% and the average daily content submissions more than tripled over the quarter. They also launched 177 new International Discover DISCA Channels, including 36 in the UK and 24 in India, one of which is a partnership with Sony Pictures Network to launch five Shows. On the content side, the company aired eight new and renewed Snap Originals, including Swae Meets World, a documentary featuring American musician Swae Lee as he prepares to launch a solo album. For Q2 2021, revenue increased 116% y-o-y to $982 million while net loss reduced by more than 50% to $152 million compared to the same period of the previous year. ![]() The stock has gained on the back of positive Q1 and Q2 results as well as positive traction for its new content offerings. Since the start of 2021 Snap’s stock has gained 48% to $74. Snap’s Stock Rallied On New Offerings – Will It Slow Down Now? ![]()
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