No-moat Snap posted positive first-quarter results, improving on a difficult fourth quarter on the back of improved user monetization. Revenue per user increased year over year for the first time since early 2022, reflecting the strength in the broader advertising market and Snap’s efforts to revive growth. We maintain our $14 per share fair value estimate.
With unique multimedia app features focusing on further differentiation, Snap may take social media market share from X and Meta.
Snap will struggle to capture enough digital advertising dollars from incumbent platforms like Google, Facebook, or X in order to drive the firm to profitability.
|
Metric
|
SNAP
|
PINS
|
GOOGL
|
|---|---|---|---|
Price/Earnings (Normalized) | 126.15 | 27.42 | 24.87 |
Price/Book Value | 11.60 | 7.26 | 6.88 |
Price/Sales | 5.09 | 7.06 | 6.47 |
Price/Cash Flow | 139.47 | 27.49 | 17.93 |
|
Metric
|
SNAP
|
PINS
|
GOOGL
|
|---|---|---|---|
Quick Ratio | 3.61 | 9.83 | 1.98 |
Current Ratio | 3.76 | 10.04 | 2.15 |
Interest Coverage | −68.01 | — | 285.78 |
|
Metric
|
SNAP
|
PINS
|
GOOGL
|
|---|---|---|---|
Return on Assets (Normalized) | 2.26% | 20.74% | 25.77% |
Return on Equity (Normalized) | 7.15% | 24.30% | 36.64% |
Return on Invested Capital (Normalized) | 0.84% | 19.95% | 32.10% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GOOGL
| Alphabet Inc Class A | Snrgdcrsm | Vycrh | $2.0 Tril | |
GOOG
| Alphabet Inc Class C | Txywchhmc | Wxrxm | $2.0 Tril | |
META
| Meta Platforms Inc Class A | Shkfmqrwtc | Djwxh | $1.1 Tril | |
TCEHY
| Tencent Holdings Ltd ADR | Xvxmdrcdy | Zhvwr | $417.9 Bil | |
SPOT
| Spotify Technology SA | Lgfgtlpv | Pnl | $55.6 Bil | |
DASH
| DoorDash Inc Ordinary Shares - Class A | Pqlgjrrb | Svrjlk | $52.9 Bil | |
BIDU
| Baidu Inc ADR | Mhxxrkcy | Cbpk | $37.5 Bil | |
PINS
| Pinterest Inc Class A | Ljknbmfch | Pjsjhw | $22.9 Bil | |
TME
| Tencent Music Entertainment Group ADR | Tsvyzvp | Kvrwc | $21.8 Bil |
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