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Snap Inc Class A SNAP

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Stock XNYS Rating as of
$4.69 −0.07 (1.47%)
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As of Delayed Price Pre-Open: $4.62 −0.07

Company Report

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Snap Is a Small Fish in a Large Digital Advertising Pond

Malik Ahmed Khan

Snap is the parent company of Snapchat, a widely used social media app with over 450 million daily active users. While the application is free to use, Snap makes money by allowing advertisers to promote their products via ads on its platform. While the firm’s ad inventory has steadily increased over time, with advertisers able to promote their products through photos, videos, and augmented reality features, Snap has been unable to effectively monetize its user base, and we believe its ad-targeting and user-engagement algorithms are less potent than larger social media players such as Meta and TikTok.

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Price vs Fair Value

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SNAP is trading at a LOCK|j<F premium.
Price
$4.76
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

With 450 million daily active users already, Snap has a large user base to build on with investments in new applications and features.

Bears

Snap’s continued spending on user acquisition and improved engagement will limit profitability for the foreseeable future.

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Trading Information

Previous Close Price
$4.76
Day Range
$4.53–4.81
52-Week Range
$3.81–10.41
Bid/Ask
$4.59 / $4.66
Shares Outstanding
1.68B
Market Cap
$7.89B
Volume/Avg
56,980 / 44M

Key Statistics

Price/Earnings (Normalized)
27.62
Price/Sales
1.30
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
10.70%

Company Profile

Snap is a technology company best known for its marquis social media application, Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Small Core
Total Number of Employees
5,261
Website
https://www.snap.com

Competitors

Valuation

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Metric
SNAP
GOOGL
PINS
Price/Earnings (Normalized)
 27.6236.3114.00
Price/Book Value
 3.828.974.65
Price/Sales
 1.3010.253.56
Price/Cash Flow
 10.1424.4111.78
Price/Earnings
SNAP
GOOGL
PINS

Financial Strength

Metric
SNAP
GOOGL
PINS
Quick Ratio
 3.301.714.01
Current Ratio
 3.531.924.23
Interest Coverage
 −2.91154.63—
Quick Ratio
SNAP
GOOGL
PINS

Profitability

Metric
SNAP
GOOGL
PINS
Return on Assets (Normalized)
 4.95%24.77%21.19%
Return on Equity (Normalized)
 17.02%35.04%25.46%
Return on Invested Capital (Normalized)
 6.01%30.59%21.54%
Return on Assets
SNAP
GOOGL
PINS

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LOCK|C%!yS&#ZLOCK|vjx$5T
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LOCK|?lrj<>jxLOCK|$H$5T
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LOCK|>tJd%!@LOCK|Q^T$2T
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LOCK|sfhKLnLOCK|sG?$51B
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LOCK|gp<r%!LOCK|?lz$37B
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LOCK|MCmpFyLLOCK|GG#t$14B
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LOCK|#GF!j?LOCK|L<N$$13B

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