Snap Inc. (SNAP): What’s the Story?

Snap Inc. (SNAP) is an interesting player in the Technology space, with a focus on Internet Software & Services. The stock has been active on the tape, currently trading at $17.51, down from yesterday’s close by -3.31%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Snap Inc. (SNAP) currently trades with a market capitalization of $21.21 Billion. That value represents a market adjusting for revenues that have been growing by 72.43 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$819.19 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.17 on a per share basis this quarter. Perhaps, that suggests something about why 16.39% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Snap Inc. recorded a 52-week high of $24.40. It is now trading 6.89% off that level. The stock is trading $16.13 its 50-day moving average by -1.38%. The stock carved out a 52-week low down at $11.28.

In recent action, Snap Inc. (SNAP) has made a move of -6.01% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 16.68, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 24.41% with $348.39 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of SNAP.

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