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Jan. 28, 2021, 10:55 a.m. EST

Snap stock rockets 11% after analyst says marketers are 'most bullish' they've ever been on the service

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By Emily Bary

Snap Inc. shares /zigman2/quotes/205087158/composite SNAP -7.91% are up 10% in Thursday morning trading after Evercore ISI analyst penned an upbeat note on the company's potential following recent talks across the ad industry and a strong fourth-quarter report from fellow social-media company Facebook Inc. /zigman2/quotes/205064656/composite FB -3.39% . "Conversations with marketers during the holiday season, were the most bullish we have ever heard on Snap," Evercore ISI analyst Kevin Rippey wrote in a note to clients. Facebook's report Wednesday afternoon makes him "confident underwriting between 65% and 70% YoY revenue growth for Snap in the 4Q," which he said is the most optimistic projection among sell-side analysts. a strong fourth quarter could be one step on Snap's eventual path to upwards of $10 billion in revenue by 2025, he said. The consensus forecast calls for $2.45 billion for 2020. "We suspect the past few days' weakness is a function hedge funds repositioning amidst the current short squeeze environment," Rippey wrote, following a 10% slide for the stock over the four prior trading days. "As such, we see this dislocation as temporary, and add SNAP to our Tactical Outperform List." Snap shares have gained 27% over the past three months as the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.54% has risen 16%.

/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 52.89
-4.54 -7.91%
Volume: 26.81M
March 8, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$86.62 billion
Rev. per Employee
$648,881
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/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 255.31
-8.97 -3.39%
Volume: 18.39M
March 8, 2021 4:00p
P/E Ratio
25.27
Dividend Yield
N/A
Market Cap
$752.58 billion
Rev. per Employee
$1.47M
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,821.35
-20.59 -0.54%
Volume: 2.99B
March 8, 2021 5:05p
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