Snap Inc. (SNAP Stock) rallied 8.51% in a week. They recently announced that they would be leveraging the benefits of AI for advertising on the platform. Last month, the company announced that Skai decided to extend its partnership and integration with Snachatp. This collaboration will enhance Snapchat’s value as a social media platform.
Financial Analysis of Snap Inc. (Snap Stock) & How It is Capitalizing on AI
With the recent boom in the Artificial Intelligence arena, the stocks of companies working in the field show significant hikes. In this race, Snap Inc. felt left out as its performance was not on par with the big players like Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META).
The social media platform is looking at leveraging AI with the recent collaboration to enhance its advertising capabilities. Recently, the company’s balance sheet metrics have been unable to compete with Baidu (NASDAQGS: BIDU) in the cash flow arena. With the current buzz around AI, the company plans to use it to maintain a strong balance sheet.
The recent AI boom caused Nvidia’s market cap (NASDAQ: NVDA) to touch $1 trillion. The NASDAQ Composite Index (COMP) gained 1.65% to 13,555.67, while the Dow Jones Industrial Average (DJIA) swelled 0.63% to 33,926.74. SNAP’s share price managed to outperform some of its competitors.
Apple Inc. (NASDAQ: AAPL) gained 1.51% to $188.06, Microsoft Corp. (NASDAQ: MSFT) swelled 1.82% to $334.57, and Alphabet Inc. (NASDAQ: GOOGL) dropped by 0.0084% to $118.33.
At press time, SNAP stock is trading at $11.48 after swelling 2.41%. Its previous close and open were at $11.20 and $11.36, respectively. The 52-week change comes with a drop of 17.77% and the current price is just $5.07 below its yester-year high of $16.55, which was achieved on July 21, 2023.
Analysts placed a 2.06 rating for HOLD and estimated a price target of $10.27 with a 10.5% downside. With an average volume of 29.87 Million shares, the market cap stays at $18.388 billion. SNAP’s share price rallied 16.31% in a month and 25.46% YTD.
The last earnings were reported on April 27, 2023, where the reported revenue of $988.608 million failed to beat the estimated revenue of $1.008 billion by 1.96%, which is equivalent to a shortage of $19.814 million. As per March 2023 data, the revenue dropped by 6.97% to $988.61 million, while the trailing twelve-month (ttm) revenue is reported to be $2.83 billion.
The operating expenses swelled by 0.06% to $913.89 million and the operating margin fell by 28.71%. Net income gained 8.61% to minus $328.67 million, while the net profit margin gained 1.74% to minus 33.25. The earnings per share (ttm) is reported to be negative $0.93. The quarterly revenue growth year-over-year (YoY) fell by 7.00%.
Snap Inc. (SNAP Stock) – Candle Exploration
A steep descending EMA, indicating weakness, is contradicted by the Relative strength index (RSI) of 70.71, getting into the overbought range. Overall momentum comes off as bullish, causing the prices to rally nearly 12% in the last four trading sessions. If all goes well, the price might cross the supply zone. It remains to be seen whether it can sustain the breakout.
If the price action heads south, it shall bounce off S1 and consolidate for a while before setting a future course of action. Since the start of 2023, the price action has been moving in a range, and only a solid breakout could break the streak.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/28/snap-inc-snap-stock-leveraging-on-ai-to-rally-ahead/