Exiting Snap Inc Options Call Before Earnings Pays Big!

Earnings Predictions” Members Make Potential Profit Of 60%!

After Snap Inc Earnings, Stock Tumbles

Despite Increase In Daily Active Users

by Ian Harvey
October 24, 2019

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Snap Inc. (NYSE:SNAP)

By exiting SNAP before earnings, the options call trade recommended before the market opened on Monday, 21st October, 2019, “Earnings Predictions” members were able to profit to the tune of 60%. As they say – “a bird in-the-hand is worth more than two in-the-bush” – or put another way – GREED can be the downfall of a great profit!

Snap Inc presented earnings on Tuesday, after the bell.  The shares rose in premarket trade after Snap disclosed in a regulatory filing that the U.S. Department of Justice and the Securities and Exchange Commission ended their investigation.

However, Snap Inc provided fourth-quarter revenue guidance of $540 million–$560 million, which was enough to send the stock south. The average of those two numbers is $550 million, which is below analysts’ average projection of $555.4 million.

Shares of Snap, the parent company of photo messaging app Snapchat, were down 6% at $13.18. They rose as much as about 3% in morning trade.

So, exiting early was definitely financially beneficial.

Read the article Exiting Options Trades BEFORE or AFTER Earnings Reports Comparison! When Is The Best Time?”

YOU NEED TO BE IN TO PROFIT!

The Recommended Trade on SNAP Inc.…..

Snap Inc. (NYSE:SNAP), formerly Snapchat, Inc., operating the popular multimedia messaging app, will report earnings after the market closes. The consensus estimate is for a loss of $0.05 per share on revenue of $436.73 million; but the Whisper number is a little better at ($0.03) per share.

The company's guidance was for revenue of $410.00 million to $435.00 million. Consensus estimates are for year-over-year earnings growth of 77.27% with revenue increasing by 46.70%.

In the last reported quarter, Snap’s subscriber growth reflected by Daily Active Users (DAUs) increased 13 million sequentially to 203 million. The Consensus Estimate for DAUs in the to-be-reported quarter is currently pegged at 207 million.

Overall earnings estimates have been revised higher since the company's last earnings release.

Snap reported second-quarter 2019 loss of 6 cents per share, narrower than the Consensus Estimate of a loss of 10 cents and the year-ago quarter’s loss of 14 cents.

The company beat the Consensus Estimate in the trailing four quarters, delivering average positive earnings surprise of 30.2%......READ MORE.....

Option trade to consider: Buy the SNAP NOV 15 2019 14.000 CALL at approximately $1.00.

The Earnings Report for Snap Inc

The analyst community predicted a loss of $0.05 per share, but the actual Q3 result was only $0.04 per share.

As well, Snap’s revenues were actually a “beat” at $446 million versus the average analyst estimate of $435.1 million. Again, that’s a solid improvement over the same quarter of last year. Plus, analysts were expecting Snap’s average revenue per user to come in at $2.10. But the released number turned out to be $2.12 per user.

And probably the most important news was that the number of daily active users proved to be a decisive win for Q3, at 210 million versus the expected 207 million.

Join us today and see what we are considering for future trades on Snap Inc!

Where to now for SNAP Inc.?

It appears that Snap Inc has seen the government dropping a huge investigation that the Snapchat company had misled investors during its March 2017 IPO, and has now reported positive surprises for third-quarter EPS, revenues, average revenue per user, and daily active users.

So…..

When investors finally come to their senses, thenthe SNAP stock price should rebound as the market prices in a solid third quarter and rewards Snap for releasing modest and realistic fourth-quarter guidance.

When would we expect to enter an options trade on Snap Inc?

What will “Stock Options Made Easy” advise members to do?

What Can You Do?

To gain further insight to these questions.....

.....Join us today and find out!


AS ALWAYS THE DECISION IS YOURS!


An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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