Analyst Note
| Ali Mogharabi |Snap grew user monetization much faster than we expected during the third quarter, which resulted in the top and bottom lines coming in better than our projections. We are raising our fair value estimate to $21 from $18 given the third-quarter performance and our overall assumption of continuing growth in digital ad spending as the economy recovers and advertisers allocate more to online platforms. But the stock remains overvalued in our view (up 23% after-hours), trading 60% above our revised fair value estimate and at 14 times 2021 revenue.