SNAP Stock Overview
Snap Inc. operates as a camera company in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$34.99|
|52 Week High||US$83.34|
|52 Week Low||US$34.76|
|1 Month Change||-24.10%|
|3 Month Change||-36.54%|
|1 Year Change||-35.68%|
|3 Year Change||467.10%|
|5 Year Change||n/a|
|Change since IPO||42.93%|
Recent News & Updates
Snap: Turbulent Times, More Estimate Reduction Needed
SNAP reports earnings within the next few weeks. Consensus is calling for a result that is towards the top end of their guidance. Structural and short-term concerns have elevated the risk profile of the business and have put management's 50%+ revenue CAGR target in jeopardy. Recent survey work from Cowen indicates that ad buyers are becoming increasingly reluctant to spend with SNAP, creating what we believe will end up being a flight to safety dynamic. On a broader level, we are slightly concerned about TikTok's competitive threat since they have near identical demographics. Additionally, we question the ability for SNAP to create effective enough 1P and 3P tools for effective targeting. Reiterating Hold rating, reducing PT from $53 to $40. Bear case of $21. Bull case of $56.
Snap: A Sinking Ship
Shares of Snap have lost nearly 50% of their value relative to all-time peaks above $80. Investors have lost confidence in the company's ability to grow users, especially as developed market/U.S. growth stalls. Snap's user growth is coming from its rest of world segment, which generates 1/10th of the U.S. ARPU. Now 10 years old, Snap is well aged as a social media platform that doesn't have the staying power of Facebook. Shares still look expensive at ~12x forward revenue.
|SNAP||US Interactive Media and Services||US Market|
Return vs Industry: SNAP underperformed the US Interactive Media and Services industry which returned 22.8% over the past year.
Return vs Market: SNAP underperformed the US Market which returned 7.7% over the past year.
|SNAP Average Weekly Movement||10.2%|
|Interactive Media and Services Industry Average Movement||9.2%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: SNAP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: SNAP's weekly volatility (10%) has been stable over the past year.
About the Company
Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures video from a human perspective; and advertising products, including AR and Snap ads.
Snap Fundamentals Summary
|SNAP fundamental statistics|
Is SNAP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SNAP income statement (TTM)|
|Cost of Revenue||US$1.69b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 03, 2022
|Earnings per share (EPS)||-0.39|
|Net Profit Margin||-16.72%|
How did SNAP perform over the long term?See historical performance and comparison
Is Snap undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SNAP ($34.99) is trading below our estimate of fair value ($87.74)
Significantly Below Fair Value: SNAP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SNAP is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.
PE vs Market: SNAP is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SNAP's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SNAP is overvalued based on its PB Ratio (16.4x) compared to the US Interactive Media and Services industry average (2.9x).
How is Snap forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SNAP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: SNAP is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: SNAP's is expected to become profitable in the next 3 years.
Revenue vs Market: SNAP's revenue (28.5% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: SNAP's revenue (28.5% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SNAP's Return on Equity is forecast to be very high in 3 years time (42.8%).
How has Snap performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SNAP is currently unprofitable.
Growing Profit Margin: SNAP is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SNAP is unprofitable, but has reduced losses over the past 5 years at a rate of 19.6% per year.
Accelerating Growth: Unable to compare SNAP's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SNAP is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-8.9%).
Return on Equity
High ROE: SNAP has a negative Return on Equity (-18.13%), as it is currently unprofitable.
How is Snap's financial position?
Financial Position Analysis
Short Term Liabilities: SNAP's short term assets ($4.5B) exceed its short term liabilities ($808.5M).
Long Term Liabilities: SNAP's short term assets ($4.5B) exceed its long term liabilities ($2.9B).
Debt to Equity History and Analysis
Debt Level: SNAP has more cash than its total debt.
Reducing Debt: SNAP's debt to equity ratio has increased from 0% to 65.5% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: SNAP has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if SNAP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Snap current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SNAP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SNAP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SNAP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SNAP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SNAP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Evan Spiegel (30 yo)
Mr. Evan Spiegel serves as an Independent Director at KKR & Co. Inc. since joining the firm in October 2021. He is a Co-Founder of Snap Inc. and served as its President. Mr. Spiegel has been Chief Executiv...
CEO Compensation Analysis
Compensation vs Market: Evan's total compensation ($USD2.09M) is below average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Evan's compensation has increased whilst the company is unprofitable.
Experienced Management: SNAP's management team is considered experienced (3 years average tenure).
Experienced Board: SNAP's board of directors are considered experienced (6.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SNAP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.
Snap Inc.'s employee growth, exchange listings and data sources
- Name: Snap Inc.
- Ticker: SNAP
- Exchange: NYSE
- Founded: 2010
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: US$56.327b
- Shares outstanding: 1.61b
- Website: https://www.snap.com
Number of Employees
- Snap Inc.
- 2772 Donald Douglas Loop North
- Santa Monica
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 00:11|
|End of Day Share Price||2022/01/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.