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Snap Stock: Back In The Buy Zone After A Justified Sell-Off

Dec. 05, 2021 6:58 AM ETSnap Inc. (SNAP) StockAAPL12 Comments


  • Snap's guidance in its recent earnings was a shocker. Therefore, the stock was justifiably punished.
  • Nevertheless, the company is still expected to grow rapidly, and also gain significant operating leverage.
  • However, investors should be reminded that the company is still in the penalty box. The company still needs time to work through Apple's IDFA changes.
  • Despite that, we discuss why we think the stock is in the buy zone now.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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Investment Thesis

Snap Inc. (NYSE:SNAP) is the leading augmented reality-focused (AR) "camera company" among its US social media peers. However, the company delivered a shocker in its FQ3'21 report card as it telegraphed that it was hit hard by

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This article was written by

JR Research profile picture

JR Research is a seasoned investor with a background in economics. He focuses on identifying 3 main things - leading growth companies, emerging market trends, and secular growth opportunities. His approach combines price action with fundamentals investing.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. The group is designed for investors seeking to capitalize on emerging, high-growth opportunities, and investors looking for sustainable growth opportunities at a reasonable price.

Learn more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNAP, AAPL, FB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (12)

Market Summary
Snap Inc
42.72 USD
−3.87 (8.31%)today
Jan 4, 12:59 PM EST • Disclaimer

why snap crashed today? down to 52 week low
120 PE? LOL.
No thanks, I will consider buying if it ever drops back to 30.
Itzik12 profile picture
Overall I agree with the thesis, my estimate is a 1 billion profit in 2022. So, a market cap of 85 b for a company with top line growth of 50% is very considerable. One can't compare it to twtr or pins. It's not even related. Snap is fb in 2011. I'm long on Snap.
$75B valuation for a co thats doing $5B in revenue? Not going to work w financial conditions tightening. I could see $50-$60B potentially…but not a buy here
do you think that those future expectations for revenue growth will be valid when economy enter recession after two years , i think all those high PE high growth stocks are rated sell now because we are in late cycle and fund managers will rotate to normal growth and value stocks
@JR Research SNAP vs PINS? PINS seems to be further depressed beyond reason.
JR Research profile picture
@MiamiInvest305 Seems like it as well. Advertising stocks have been hit very hard, so it's seems to have affected the segment as a whole.
@JR Research not valid for TTD
@Senopta Motley Fool always pumping $TTD but even ARK doesn't own $TTD meaningfully if at all
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