![]() ![]() ![]() During the conference call, CEO Evan Spiegel said Apple's changes made it "more difficult for our advertising partners to measure and manage their ad campaigns for iOS," while CFO Derek Andersen admitted the changes would continue to generate headwinds for its "direct response" ads (which account for half of Snap's advertising business) in the fourth quarter. Snap's outlook wasn't terrible, but management may have set the bar too high during its investor day back in February when it proclaimed its revenue would grow roughly 50% annually over the next few years.Īt the time, Snap predicted the expansion of its self-service ads, a rising mix of higher-value video ads, new augmented reality features and games, and the expansion of its "social shopping" platform would all drive that growth.īut Snap clearly underestimated the impact of Apple's iOS update. Its ARPU also fell sequentially in Europe and the rest of the world in the third quarter and was only offset by its North American growth. Snap blamed that slowdown on Apple's (NASDAQ: AAPL) recent privacy changes on iOS, which allow users to opt out of targeted advertising, and macroeconomic headwinds (such as supply chain and labor challenges) for certain advertisers. That implies its revenue will rise 59%-61% for the full year, well below expectations for 68% growth. Snap management forecast revenue to rise 28%-32% year over year on Q4, compared to analyst expectations for 49% growth. Snap's core business looks healthy, but its revenue missed analysts' estimates and its guidance for the fourth quarter also came up short. As a result, it generated positive free cash flow ( FCF) of $62 million in the first nine months of 2021, compared to negative FCF of $156 million a year ago. Snap continues to narrow its losses and remains on track to deliver its second straight year of adjusted EBITDA profitability. Its total ARPU also improved sequentially. teens chose Snapchat as their favorite social media app, compared to 30% for ByteDance's TikTok and just 22% for Facebook's Instagram.Īs a result, Snap's average revenue per user (ARPU) rose 28% year over year, with growth across all of its regions. Piper Sandler's latest "Taking Stock With Teens" survey supports that view. Those rising ad prices indicate that advertisers are still flocking to Snapchat to reach younger Gen Z and millennial consumers. Snap's average eCPM (effective cost per thousand impressions, or the average cost of its ads) increased 62% year over year, on top of its 20% growth in the prior-year quarter. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.Snap expects that growth to continue with 316 million to 318 million DAUs in the fourth quarter, which would equal 19% to 20% growth from the prior-year period. On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The site has a one-year forecast of $59 and a five-year price target of $165.83, for a more than 500% upside. Wallet Investor also has strong faith in the social media company. Of their 41 analysts, 27 rated the company a “buy,” while 2 rate it “outperform.” However, 12 analysts give SNAP a more tentative “hold” rating. Clearly they believe Snap’s recent lows will give way to further gains.ĬNN’s analyst consensus is similarly bullish on SNAP. Can it retake its highs, or was today’s reversal simply a detour before another plunge? Let’s see what the analysts think: SNAP Stock Price PredictionsĪccording to TipRanks’ consensus of 20 analysts, SNAP is a “strong buy.” With an average 12-month price target of $56, analysts see 130% upside potential for SNAP stock. Investors are surely scratching their heads wondering where Snap will go next. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock fell to a 52-week low of $24 before soaring on news of its first quarterly profit. Since then, shares have been on a decline, and today brought ugliness for investors… at least initially. Just this September, the company notched its 52-week high of $83 per share. SNAP is a good example of the growing uncertainty in the stock market. Is SNAP going to the moon, or will the bears take over yet again? ![]() Tech stocks have been on a roller coaster ride that won’t seem to end. Snapchat is a mobile messaging application used to share photos, videos, text, and drawings. Snapchat (SNAP) application on android cell smartphone. ![]()
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