On Monday, Snap's shares were at their highest in over a year following a bullish report from Wells Fargo analysts. The report included an upgrade of the stock from "equal weight" to "overweight" and increased the price target from $8 to $22. This rally was a result of Snap's third-quarter earnings report from October where the stock briefly rose by up to 20%.
On Monday, shares of Snap rose to their highest price in over a year after analysts at Wells Fargo released a positive report on the stock, upgrading it from equal weight to overweight and raising their price target from $8 to $22. Trading around $15.70 in the morning, this was the highest level for the stock since July of 2022. The analysts noted that advertising at the social media giant is showing signs of improvement for the first time since April of 2021. They added that strategic hires from competitors Google and Meta last year have helped rebuild their ad business and strengthened their bottom line. Snap also reported higher-than-expected revenues in October, which sent shares up 20%. CEO Evan Spiegel credited cost-cutting initiatives and "positive growth" to this result.
The Wells Fargo analysts further predicted that meaningful gross margin improvement should be seen in 2024 onward with a forecasted 65% gross margin by 2027. The stock is up nearly 4% on Monday and up 75% year to date. Investors should keep an eye on the company's go-to-market efforts and product updates as these could drive further success.
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