What the bad jobs report means for markets
Josey expressed a cautious optimism about Snap’s trajectory, noting the advancements in engagement and direct response advertising. While the company is not currently profitable, InvestingPro analysts predict profitability in 2024, with revenue growth of 13.66% in the last twelve months. However, he also pointed out that there is still some uncertainty regarding the company’s future, which has led to the decision to maintain the Neutral rating. The balanced risk/reward scenario was a key factor in this assessment, even as the price target was adjusted to reflect the positive trends in Snap’s direct response advertising and subscription services. InvestingPro’s comprehensive Fair Value analysis and Financial Health Score of "FAIR" provide additional context for investors seeking deeper insights into SNAP’s valuation and future prospects.
Josey expressed a cautious optimism about Snap’s trajectory, noting the advancements in engagement and direct response advertising. While the company is not currently profitable, InvestingPro analysts predict profitability in 2024, with revenue growth of 13.66% in the last twelve months. However, he also pointed out that there is still some uncertainty regarding the company’s future, which has led to the decision to maintain the Neutral rating. The balanced risk/reward scenario was a key factor in this assessment, even as the price target was adjusted to reflect the positive trends in Snap’s direct response advertising and subscription services. InvestingPro’s comprehensive Fair Value analysis and Financial Health Score of "FAIR" provide additional context for investors seeking deeper insights into SNAP’s valuation and future prospects.
The company’s global engagement levels have been on the rise, a trend attributed to the popularity of Spotlight, Snap’s user-generated content feature. Progress has also been noted in the rollout of the Simple Snapchat redesign, which is being implemented cautiously to avoid hindering the growth in user engagement.
While direct response advertising revenue saw a 14% year-over-year increase, brand advertising faced challenges, with revenue declining by 1% from the previous year. Snap has plans to invest in its platform throughout 2025, which is expected to limit margin expansion. Despite these investments and the challenges faced in brand advertising, the gains in user engagement and improvements in direct response advertising have led to the raised price target.
Josey expressed a cautious optimism about Snap’s trajectory, noting the advancements in engagement and direct response advertising. While the company is not currently profitable, InvestingPro analysts predict profitability in 2024, with revenue growth of 13.66% in the last twelve months. However, he also pointed out that there is still some uncertainty regarding the company’s future, which has led to the decision to maintain the Neutral rating. The balanced risk/reward scenario was a key factor in this assessment, even as the price target was adjusted to reflect the positive trends in Snap’s direct response advertising and subscription services. InvestingPro’s comprehensive Fair Value analysis and Financial Health Score of "FAIR" provide additional context for investors seeking deeper insights into SNAP’s valuation and future prospects.
In other recent news, Snap Inc (NYSE:SNAP). has been in the spotlight following its fourth-quarter earnings for 2024, which exceeded expectations. Analysts from JMP Securities reaffirmed their Market Outperform rating for the company, with a steady price target of $16.00, attributing this to the company’s positive trend in advertising revenue and continued momentum in direct response. BofA Securities also updated their outlook on Snap, raising the price target to $14.50 while maintaining a Neutral stance. The firm highlighted potential new revenue streams but expressed caution regarding user growth stagnation and increasing expenses.
Goldman Sachs maintained its Neutral rating on Snap with a price target of $13.50, noting the company’s strong revenue performance and growth in areas like direct-response initiatives and Snapchat+ subscriptions. However, they pointed out potential decreases in incremental margins for 2025 due to forecasted gross margins and operating expenses.
In other developments, Snap, along with Reddit, has initiated a strategy to attract advertisers by offering discounts to those who increase their ad spend on their platforms. This move is seen as an attempt to capitalize on uncertainties surrounding TikTok’s future.
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