5 Stocks Receiving a Massive Vote of Approval From Wall Street Analysts

04. Snap Inc. (NYSE:SNAP)

Price Reaction after the Upgrade: 0.00 (0.00%)

On October 26, China Renaissance analyst Ella Ji instigated a notable shift in the market dynamics for Snap Inc. (NYSE:SNAP) by upgrading its rating from Sell to Hold. This strategic reevaluation was accompanied by a revised price target of $9.00, indicating a change in perspective on Snap Inc. (NYSE:SNAP) market performance. As of the latest market data, Snap Inc. (NYSE:SNAP) stock is currently valued at $9.30, reflecting a slight increase from its target price of $9.00.

Here is what RiverPark Large Growth Fund has to say about Snap Inc. (NYSE:SNAP) in its Q3 2022 investor letter:

“SNAP shares were our top detractor for the quarter on its July decline from weaker revenue growth relative to guidance (which had been reduced in May) and the fact that management did not provide an outlook for 3Q. Shares subsequently rebounded somewhat as the company announced better-than-expected near-term revenue growth, while announcing a broadbased cost restructuring.

Although the company continues to face near-term macro headwinds and difficult year-over-year comparisons from COVID-fueled quarters last year, we believe SNAP can reaccelerate its revenue growth to greater than 20% annually over the next several years. With TTM revenue of $4.5 billion (as compared with Meta’s $120 billion), 347 million daily average users (about 1/10 of Meta’s), and $14 TTM ARPU (about 1/3 of Meta’s), we believe SNAP has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, continues to grow its audience (daily active users continue to grow at a double-digit rate), and expands its monetization.”