The positive analyst reviews for the company continue to accumulate.
Several stocks outperformed the market on Wednesday and Thursday, with social media company Snap Inc. (NYSE: SNAP) standing out among the high achievers. Snap posted a significant gain on the second-to-last trading day of the week, rising over 4% on a day when the S&P 500 index increased by 1.7%. Snap did not release any new information, but an analyst’s endorsement helped to boost its stock.
### Analyst Endorses Snap’s Prospects
Two days after Snap’s partner summit, where it unveiled various innovations, an analyst reiterated a positive stance on the company. Alan Gould of Loop Capital, prior to market opening, published an analysis covering both the summit and Snap’s future prospects. Gould maintained his buy recommendation and $14 per share price target.
In his latest research note, Gould mentioned that the event did not alter his view of Snap’s potential, but he found several management updates encouraging. Notable among these was the growth in monthly average users (MAUs), an important metric in the social media sector. Snap’s MAUs increased by 100 million, reaching 850 million from last year’s figure.
### Revenue Streams: Prominent and Emerging
Gould also expressed confidence in Snap’s augmented reality (AR) glasses, a segment often overlooked. He acknowledged that it would take considerable time for this opportunity to fully develop. Concurrently, he pointed out that unification efforts in content and advertisements would offer new optimization opportunities, and advancements in app install ads could drive growth in direct response revenue.
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Eric Volkman has no positions in any of the stocks mentioned. The Motley Fool holds no positions in any of the stocks mentioned and maintains a disclosure policy.
