5 Best Technology Stocks to Buy for Long Term

3. Snap Inc. (NYSE: SNAP)

No. of Hedge Fund Holders: 63

Snap Inc. (NYSE: SNAP) is an America-based social media and camera company behind Bitmoji, Spectacles and Snapchat. 

CFRA upgraded the stock to “Hold” from “Sell” after the company posted upbeat Q1 results. Adjusted loss in the period came in at 0 cents, while the Street was expecting a loss of 6 cents. Revenue in the period came in at $770 million, versus $743.8 million. Global daily active user count was 280 million vs. 274.62 million estimated by the Wall Street.

Snap ranks 3rd in our list of best technology stocks to buy for long term.

In its Q4 2020 investor letter, RiverPark Advisors highlighted a few stocks and Snap Inc (NYSE:SNAP) is one of them. Here is what the fund said:

“Snap shares were our top contributor for the quarter driven by the company’s blow out third quarter earnings. The company grew revenue 52% year over year to $679 million (exceeding Street expectations by $120 million), and management guided to continued strong revenue growth of 47%-50% for the fourth quarter (more than $100 million greater than current estimates). Revenue growth was driven by strong engagement as well as better-than-expected monetization: Daily Active Users grew 18% year over year, they spent more time on the app (total daily time spent by Snapchatters watching Shows increased by over 50%) and created more Snaps (average Snaps created grew 25% year over year), while average revenue per user (ARPU) grew 28%. Additionally, SNAP delivered its most profitable quarter as a public company–adjusted EBITDA turned positive to $56 million for an 8% margin, vastly exceeding expectations of a $45 million loss.

Snap, known for its mobile-only picture and messaging application Snapchat, has a large and growing user base (249 million DAU) that is extremely engaged, opening Snapchat over 30 times every day, and creating, on average, more than 4 billion Snaps per day. Additionally, with less than $3 billion in run rate revenue and an ARPU that is about 1/2 that of Twitter and 1/3 that of Facebook, Snap should be able to more fully monetize its audience as it continues to create more services—content, advertising, gaming and developer tools.”