Snap Inc. (NYSE:SNAP) has received a price target of $12 from RBC Capital, indicating a potential increase of approximately 53.26%.
The company reported a 14% increase in Q1 revenue to $1.36 billion, surpassing estimates, despite challenges in advertising revenue.
Snap’s daily active users rose to 460 million, with the company also surpassing 900 million monthly active users.
Snap Inc. (NYSE:SNAP), a prominent player in the social media industry, known for its popular app, Snapchat, has been navigating a challenging landscape, with its stock price currently at $7.83. Brad Erickson from RBC Capital recently set a price target of $12 for SNAP, suggesting a potential increase of approximately 53.26% from its current price.
Despite the optimistic price target, Snap faces industry concerns, particularly due to its lack of forward guidance, as highlighted by Bloomberg Technology. This uncertainty has contributed to a significant drop in its share price, falling over 15% after the company decided not to provide guidance for the second quarter. However, Snap’s core business shows some healthy signs, as noted by Minda Smiley from eMarketer.
Snap’s recent earnings report reveals challenges in advertising revenue, with CFO Derek Andersen noting reduced advertiser spending due to changes in the de minimis exemption, as reported by Barrons. This development could impact Snap’s financial performance, despite the company reporting a 14% increase in Q1 revenue to $1.36 billion, surpassing estimates.
The company has made strides in reducing its net loss to $140 million from $305 million, with the loss per share improving to $0.08 from $0.19. Snap’s daily active users rose to 460 million, and CEO Evan Spiegel highlighted the achievement of surpassing 900 million monthly active users, attributing revenue growth to advancements in advertising solutions and the Snapchat+ subscription service.
Snap’s stock has fluctuated between $7.80 and $8.13 today, with a market capitalization of approximately $13.28 billion. The stock has seen a high of $17.33 and a low of $7.08 over the past year. Despite the challenges, Snap’s strong Q1 performance and user growth provide a foundation for potential recovery.
