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Snap Inc Class A SNAP

Morningstar Rating
$15.59 −0.02 (0.13%)
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Company Report

Snap's Smaller Size Is a Disadvantage as It Fights for User Attention

Snap is the maker of one of the most popular social networking apps, Snapchat, which has captured 414 million global daily users as of the end of 2023, most of whom are between the ages of 18 and 24. We believe that Snap and its users benefit from a network effect and that the firm is starting to attract the attention (and dollars) of advertisers. However, there is no guarantee that Snap will effectively monetize these users consistently. In turn, we are not yet convinced about the firm’s ability to generate excess returns on capital over the next decade.

Price vs Fair Value

SNAP is trading at a 397% premium.
Price
$15.59
Fair Value
$68.00
Uncertainty
Very High
1-Star Price
$46.70
5-Star Price
$5.00
Economic Moat
Fts
Capital Allocation
Gzvtkhj

Bulls Say, Bears Say

Bulls

With unique multimedia app features focusing on further differentiation, Snap may take social media market share from X and Meta.

Bears

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.

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News

Trading Information

Previous Close Price
$15.61
Day Range
$15.3315.69
52-Week Range
$8.2817.90
Bid/Ask
$15.53 / $15.57
Market Cap
$25.58 Bil
Volume/Avg
8.6 Mil / 26.5 Mil

Key Statistics

Price/Earnings (Normalized)
130.68
Price/Sales
5.28
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.74%

Company Profile

Snap owns one of the most popular social networking apps, Snapchat, claiming more than 400 million daily active users as of the end of 2023. Snap generates nearly all its revenue from advertising. While only about one quarter of users are in North America, the region accounts for about 65% of sales.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Mid Growth
Total Number of Employees
5,289

Competitors

Valuation

Metric
SNAP
PINS
GOOGL
Price/Earnings (Normalized)
130.6835.6727.01
Price/Book Value
12.029.457.47
Price/Sales
5.289.197.03
Price/Cash Flow
144.4835.7519.48
Price/Earnings
SNAP
PINS
GOOGL

Financial Strength

Metric
SNAP
PINS
GOOGL
Quick Ratio
3.619.831.98
Current Ratio
3.7610.042.15
Interest Coverage
−68.01285.78
Quick Ratio
SNAP
PINS
GOOGL

Profitability

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%
Return on Assets
SNAP
PINS
GOOGL
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