Snap stock earnings

Snap Stock Still Soaring Even Though Analysts Hate It

Snap stock climbed another 15% on Friday as analyst opinions of the new tech stock come pouring in. Like they do with any hot tech name, investors are greedily gobbling up shares of the Snapchat parent. However, most analysts are quite bearish on Snap stock, which rarely happens with any tech company, let alone one that's just had its initial public offering.

Snap stock euphoria
Investors apparently aren't perturbed by the lack of voting rights assigned with the shares that are being sold right now, although more than one analyst has warned that this should be a cause for concern. CEO Evan Spiegel and CTO Robert Murphy own a total of 40% of the Snapchat parent's market capitalization and hold 89% of the voting rights, warns Ihor Dusaniwsky, head of research at financial analytics firm S3 Partners.

Susquehanna analyst Shyam Patil said in a note dated March 3 that he has initiated coverage of Snap stock with a Neutral rating and $22 price target. He noted that "euphoria" might cause a disconnect between the company's valuation and its fundamentals, which it certainly seems to have done. He suggests that euphoria could carry Snap stock as high as the low $30 range, but only in the near term.


This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email and we will get back to you as quick as humanly possible

Saved Articles

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Opt out of occasional 3rd party offers

Congrats! Are you a smart person? We have a limited time offer for sophisticated and loyal readers like yourself.

Sign up today and get three months free

Use coupon code VIP19 or click on the button below

Limited time offer only expires 8/31/2019 or next 30 now just 2 subscribers whichever comes first – please do not share this discount with others