Snap stock: buy or sell?
Updated on:
Dec 1st, 2020
1
Snap stock brief
- Snap stock merely moved 0.18% to close at $44.50 on the stock market on Tuesday.
- With the recent gains, Snap is approaching to new all-time highs again, that are now just 5.86% above the current trading
- From the chart point view, price is drawing a scaled uptrend since last March with higher tops and higher bottoms. Up to date, the uptrend made a 464.01% profit since the beginning of this rally
- Snap Inc. operates as a camera company in the United States and internationally.
Should I buy Snap stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $SNAP stock a buy?
In the current situation of Snap there is not any eligible buy setup. This doesn't mean $SNAP will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Snap stock?
When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your profits. Trading strategies allow us to avoid rash decisions based on our personal feelings or the buzz that surrounds the market. When selling, as well as buying, detailed strategies are very easy to use and are only valid for selling stocks you already own, not for selling short Snap stock
A guiding principle is that you should not keep an investment that leads to greater losses than those expected at the time of purchase. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Snap stock?
In the current situation of Snap there is not any eligible sell setup, so Snap stock holders with operations in green can keep their positions
Snap ratings
In the last month, 2 ratings were published for Snap. General sentiment is bullish, with 2 out of 2 posting optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Nov 12th, 2020 | |
| Deutsche Bank Aktiengesellschaft | |
| Nov 19th, 2020 | |
| Loop Capital | |
Snap stock analysis
Snap stock started an uptrend last March, and gained a gorgeous 464.01%. During this uptrend, the price gave some entry points on the breakouts. Latest low was in mid-November, when price bounced at $37.35. Currently, it trades in a consolidation between its last top ($47.27) and its last bottom ($37.35)
$SNAP approaching to All-time Highs
Close to ATH
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on November 23, the price corrected downwards by 5.86%
Relative strength index
The RSI dropped below the overbought level of 70 in early November after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Tuesday was 61.83. Snap price fell a 1.94% since that level was lost
Snap stock price history
Snap started trading priced at an adjusted price1 of $24.00 on Mar 2017. Since then, SNAP stock has risen by 85.42%, with an average of 28.47% per year. An investment of $1,000USD on the IPO would be valued $1,854.17 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Snap stock
Nobody can predict how much a stock will be priced in the future. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price target based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and many times. Again, these targets are not direct recommendations for small traders and should not be followed blindly.
There are 2 price predictions posted for Snap that average $48.50. That is a 8.99% than the current price ($44.50).
| Brokerage firm | Price target |
|---|---|
| Nov 12th, 2020 | |
| Deutsche Bank Aktiengesellschaft | $40.00 → $48.00 |
| Nov 19th, 2020 | |
| Loop Capital | $27.00 → $49.00 |
Earnings and financials
Investors call was hosted by Snap ($SNAP) last October after releasing the financial report. Snap reported earnings of $0.01 per share on sales of $678.7 million. The Wall St estimate was $-0.05 per share on revenue of $550.0 million.
Compared to the same quarter one year ago, EPS was $-0.04, so posted EPS is a increase of 125.00%. Turnover skyrocketed a 52.10% on an annualized basis in the , from $4.5B to $6.8B last quarter.Snap ($SNAP) is releasing quarterly financial report next February. Wall Street forecasts of $0.07, compared to Q3 that was $0.01.
Snap competitors
Snap belongs to the Internet Content & Information industry, where it has 38 industry peers.
Snap most relevant competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Snap ($SNAP) | $68.6B | | 2 |
| Google ($GOOGL) | $1.2T | | 2 |
| Google ($GOOG) | $1.2T | | 1 |
| Facebook ($FB) | $783.3B | Neutral | 0 |
| NetEase ($NTES) | $63.8B | | 1 |
| Spotify ($SPOT) | $49.3B | Buy | 1 |
| Twilio ($TWLO) | $47.9B | Buy | 1 |
1 In the last 30 days.
Snap performance
To better understand Snap stock performance you must compare its gains with other related stocks in same sector or industry.. For Snap, the benchmark is made against Google, Google, Facebook, NetEase, Spotify and Twilio.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Snap ($SNAP) | 12.60% | 97.60% | 128.30% |
| Google ($GOOGL) | 10.60% | 7.60% | 25.00% |
| Google ($GOOG) | 5.30% | 7.60% | 22.40% |
| Facebook ($FB) | 0.90% | -6.00% | 19.30% |
| NetEase ($NTES) | 3.80% | -7.90% | 8.10% |
| Spotify ($SPOT) | 10.50% | 2.40% | 53.90% |
| Twilio ($TWLO) | 11.90% | 16.70% | 60.80% |
Important:
The viewpoints written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not know the individual conditions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are provided for learning purposes onlySnap summary
| Tuesday, December 1st, 2020 | |
|---|---|
| Open | $44.9 |
| Close | $44.5 |
| Day range | $43.39 - $45.2 |
| Previous close | $44.42 |
| Session gain | 0.18% |
| Average true range | $2.78 |
| 50d mov avg | $35.25 |
| 100d mov avg | $28.94 |
| 200d mov avg | $22.80 |
| Earnings date | February 2nd, 2021 |