by Ian Harvey
January 23, 2020
Snap shares will continue pushing higher in 2020 due to several positive factors.
“Cut-to-the Chase Members,” turn a major losing trade into a 152% winning profit by doubling-down!
Snap shares climbed 196.4% in 2019, and revenue is now moving toward breakeven with a steady narrowing of its net losses in recent quarters. Snap, a social media company, broke out to a nearly two-year high Friday. Snap stock jumped 4.7% to close at $19.11 on the stock market Friday, climbing above its buy point of 18.46.
The redesign of the Snapchat app on Android has helped improve the company’s performance over the past year.
As well, the stock has been fueled by a strong performance from the company turning around user growth, improving margins, and setting itself up for its first profitable quarter on an adjusted EBITDA basis.
The company has done a great job of monetizing users compared to the dominant ad companies such as Alphabet and Facebook. And so far, Evan Spiegel and his team have been executing on that opportunity.
It appears that Snap is on course, in 2020, to see its first profitable year since going public.
And the gains of Snap shares being experienced at the moment will likely continue.
YOU NEED TO BE IN TO PROFIT!
Analyst Upgrade on Snap.....
Last Friday, Snap was upgraded to a buy from neutral by UBS analyst Eric Sheridan, who also raised his price target on Snap stock to $24, from $16. Sheridan cited expectations of strong revenue growth.
"We see Snap exiting 2019 with positive business momentum in terms of both ad revenue and user growth and expect such momentum to persist in 2020," Sheridan wrote in a note to clients. "We see a renewed management team focused on driving a mix of user growth (especially the Android refresh) and ad monetization that could produce multiyear revenue growth even above our newly raised forecasts."
Profiting from the recommended trades on SNAP…..
The original recommendation..... September 18, 2019.....saw profit rise briefly before falling sharply due to a disappointing earnings report on October 24, 2019. At this stage Cut-to-the-Chase members were staring at a loss, but, Snap shares started to slowly wind its way back upwards.
This led us to the last recommendation...... January 06, 2020…..which was doubling-down, as well as doubling the amount of contracts previously purchased.
As at expiry, members were up 152% - not from looking at a major loss to a substantial gain!Support for this strategy could be found in......Several Positives Factors.....
As mentioned in the latest recommendation analysts have taken a more optimistic view of SNAP’s prospects.
Also, the next earnings report on February 4 is expected to achieve a break-even point for the first time on the basis of earnings before interest, tax, depreciation and amortization, or EBITDA.
Snapchat’s user base has resumed growing and has an enormous opportunity to monetize its users. Particularly overseas, Snap can take a large amount of market share, which will drive revenue growth and margin improvements.
SNAP stock looks like a good digital ad-fueled stock, and in 2020 Snap should have a strong showing, as it is attractively positioned in that market.
Snapchat management continues to innovate at an impressive pace, and this sustained innovation lays the groundwork for sustained user growth over the next several quarters.
Snap’s innovation comes in three parts — product, content, and access.
Join us today and see what future trades will be recommended!
Earlier this month, Snap announced that it is buying AI Factory, a firm based out of Ukraine that focuses on video-editing technologies. AI Factory helped with the creation of Snap’s new Cameos feature that allows users to turn their selfies into animated short videos.
Snap shares have enjoyed tremendous success pioneering photo lenses and filters, and is betting that giving this sort of creativity to short videos will help drive more user engagement and create additional types of advertising opportunities.
Snap has the ability to power up to $20 and potentially past that if ad spending continues to grow at a decent clip.
The question remains...... Is SNAP still a good opportunity?
For answers, join us here at Stock Options Made Easy, and get the full details on the next trade.
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!