Snap, Inc. [NYSE: SNAP] also known as Snapchat has continued its bullish climb since we previously wrote about it on June 5 in an article titled, “Snap (SNAP) Continues its Bullish Streak as User Numbers Grow.” Since then the stock has traded from the $12’s to currently at $15.50 as of yesterday’s closing price. Furthermore, Goldman Sachs analysts are betting big on millennials, with an upgraded rating of Snapchat. A team of analysts at Goldman Sachs has upgraded their outlook of this stock from neutral to buy. The company has also raised its target for SNAP to $18, up from $13. Goldman Sachs reason for the upgrade is that, Snap’s product improvement and features have led to better user growth and engagement. Some of the developments that Goldman Sachs is banking on to drive Snap growth include: The new Android app, viral lenses, and snap games. Snap has also recorded improvements in monetizing its ad technology initiatives. According to the analyst team led by Heath Terry, this should drive up the consensus estimates for Snapchat.
Going by Snap’s most recent growth numbers things seem to be looking better for the company. In May, Snapchat downloads shot up to 41 million. This marked a reversal from the 2018 and early 2019 trend, when Snapchat downloads were stagnating. It’s an indicator that user interest in Snapchat is on the rise again.
Snap ad innovation such as self-serve could be a huge boost for the company in the long run as well. That’s because, it will enable the company to better monetize the time that users spend on the platform. It could be a big win for Snap given that monetization has been one of the biggest problems that WallStreet has with this stock.
On Monday trading, Snap was down slightly by 0.70%. The key level to watch in the day will be $15.73. It’s a key short term resistance level, and if Snap breaks it, it could possibly trade in the green on Tuesday trading.