On Tuesday, Guggenheim Securities sustained its Buy rating and a $13.00 price target for Snap Inc (NYSE:SNAP), the company behind the popular social media app Snapchat. With the stock currently trading at $12.99, InvestingPro data shows analyst targets ranging from $9 to $18, reflecting mixed sentiment in line with the company's recent performance.
The firm's analysis of updated Ads Manager audience reach and Apptopia download data through November indicated a mix of trends. While global audience reach growth showed a deceleration according to the Ads Manager data, Apptopia's download trends noted a slight improvement.
Snap Inc.'s international performance stood out, showing relatively stronger trends compared to domestic figures in both sets of data. The company's guidance for the fourth quarter daily active users (DAUs) is set at 451 million, which suggests an addition of roughly 8 million users sequentially, maintaining a growth rate similar to that of the third quarter. This expansion aligns with the company's robust revenue growth of 13.66% over the last twelve months, according to InvestingPro data.
According to Guggenheim's assessment, the data trends for the fourth quarter to date appear to align with the company's expectations. The firm anticipates that usage trends will become a significant point of interest as Snap Inc. prepares to launch a more user-friendly version of Snapchat, which is expected to be available in the first quarter of 2025 at the earliest.
The analysis by Guggenheim underscores the importance of user engagement and growth metrics as key indicators of the company's performance. Snap Inc.'s efforts to innovate and improve the user experience with the upcoming release of Simplified Snapchat may be crucial for sustaining user interest and expanding its user base in the competitive social media landscape.
In other recent news, Splash Beverage Group and Snap Inc have seen significant developments. Splash Beverage Group recently held a conference call to discuss their third-quarter results for 2024, ongoing mergers and acquisitions efforts, and updates on capital raises.
The company is actively pursuing M&A opportunities, including the acquisition of Western Son Vodka and the signing of a letter of intent to acquire an energy drink company. Despite these positive moves, Citi has revised its revenue forecasts downward for 2024 and 2025, leading to a new price target of $0.50. However, Citi maintains a Buy rating on Splash Beverage, citing a favorable risk-reward scenario.
On the other hand, Snap Inc has been the focus of positive outlooks and strong Q3 results. The company reported a 15% year-over-year increase in Q3 revenue, totaling $1.37 billion, and a rise in daily active users to 443 million. This growth was attributed to the company's direct response advertising business and the Snapchat+ subscription service. Loop Capital raised its price target for Snap from $14 to $16, maintaining a Buy rating. Meanwhile, Citi analyst Ronald Josey adjusted the price target for Snap Inc, increasing it to $13.00 from the previous $11.00.
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