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Snapchat Inc. hits $100 billion in market value after stock gets an upgrade

Snapchat Inc. hits $100 billion in market value after stock gets an upgrade

Snap shares flickered, touching a $100 billion market value, after Morgan Stanley analysts elevated Snapchat’s parent.

Snap shares flickered on Monday, touching a $100 billion market value, after Morgan Stanley analysts elevated Snapchat’s parent.

“SNAP’s use cases/engagement continue to expand … with SNAP having recently disclosed 100 million-plus global Spotlight users (after only launching 3 months ago) and 250 million-plus global Maps users. Further, we estimate there are 300 million-plus global Discover users,” Morgan Stanley analyst Brian Nowak said.

Snap shares early on jumped as much as 3% to $67.50. They have also fallen as much as 1.1% to $64.78. The stock at the last check was off 0.6% to $65.16.

Snap looks set for continued faster-than-expected growth in engagement, revenue, and earnings before interest, taxes, depreciation, and amortization, according to Nowak, who raised his price target to $80 a share from $50.

According to Bloomberg, a $100 billion valuation would make Snap a more valuable company than Target and Lockheed Martin. The stock has doubled in about four months.

Morgan Stanley expects Snap to achieve a 37% top-line compounded annual growth rate between 2021 and 2024, which is faster than most of its peers in the social media space.

Earlier this month, Snap forecast a first-quarter loss before interest, taxes, depreciation, and amortization, even after its fourth-quarter results topped analyst estimates.

The company said its first-quarter adjusted Lbitda would range from $50 million to $70 million. Revenue is expected to be $720 million to $740 million, vs. $462 million in the year-earlier quarter.

Four analysts surveyed by FactSet, on average, had been expecting the Santa Monica, Calif., company to report the first-quarter Ebitda of $258.3 million.

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Written by Ritik Gupta

His name is Ritik Gupta; currently pursuing law. He has always kept pride as his everything. He deems writing as not like any other hobby but a reflection of one’s intellectuality. He likes to research on the parasitic problems and then lay them down in such a means that can be of assistance to the society. He just not studies law but treats it a controversial weapon to defeat the wrong.

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