Ritik Gupta
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.
