Snap's stock rises as it wins a few more 'buy' ratings
Mar 30 2017
A day later it was Brian White at Drexel following suit. Snap Inc (NYSE:SNAP) has a market capitalization of $28.14B and most recently 1.19B outstanding shares have been calculated. They set a "reduce" rating and a $16.00 price objective on the stock. The stock began the week in the high teens, so both goals implied a fair amount of upside.
"Snap is a venture stage investment in the public markets, something unseen in recent years where almost all internet companies waited until later stages of growth and profitability to go public".
Snap shares have been on a roller-coaster ride since IPO, rocketing 59% on its first few days on the market before dropping low double-digit percentages in subsequent weeks.
Pessimism carried over into the following week, with the stock taking an 11% hit.
Would Snap be a positive addition to your portfolio, and should you snap-up shares now?
The Stock has Weekly volatility of 5.07%. The stock's a bucking bronco until proven otherwise.
This afternoon, Aegis Capital'sVictor Anthony, who has a Hold rating on Snap, and a Buy on Facebook, writes that "Facebook now has versions of Snap's features in all its apps - Facebook, Instagram, Messenger and WhatApp".
JPMorgan initiated coverage of the stock with a Neutral rating, saying that it will "take more time" for Snap to prove that it has "real staying power", as well as to justify its hefty $20 billion-plus valuation.
Shares of Snapchat were up about 4.5 percent Monday in a market that is otherwise heading south. Then this week, the floodgates of bullish coverage were opened with the closure of the blackout window for the IPO underwriters.
TRADEMARK VIOLATION WARNING: "Snap Inc (SNAP) Given Consensus Rating of "Hold" by Brokerages" was published by BBNS and is the sole property of of BBNS.
The ratings come after the required 25 day "quiet period" for underwriters of the blockbuster IPO. There were 26 firms involved with the IPO, and they are more likely to be bullish than those that didn't participate in the offering. Bias and expectations are combining to keep Monday's initial move in check. On technical aspect, moving averages may help to distinguish path of dispositions, and they may also be used to set degrees of support and resistance. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
The popular television program CNBC's "Mad Money" host Jim Cramer suggests investors should think twice before buying into SNAP stock on account of fresh bullish commentary.