Social Media Stock Gaps Lower Before Earnings

Analysts are already firmly bullish towards SNAP

Digital Content Manager
Feb 2, 2022 at 1:06 PM
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Social media giant Snap Inc (NYSE:SNAP) is plummeting ahead of its fourth-quarter earnings report, which is due out after the close tomorrow, Feb. 3. The equity was last seen down 5.1% to trade at $31.93, though a catalyst for today's negative price action was not immediately apparent. 

Digging deeper, Snap stock more than halved its Sept. 24, all-time high of $83.33, as the 20-day moving average guided the shares to a Jan. 24 two-year low of $28.02. The equity has since bounced off those lows, though overhead pressure remains at the $36 level. In the last six months, SNAP has shed 58.6%.

SNAP 20 Day

The security has a history of upbeat post-earnings reactions, however, finishing five of its past eight next-day sessions higher, including a 36.7% pop back in April 2020. Options traders are pricing in a 26% swing for SNAP this time around, which is higher than the 19.1% move it averaged following its last eight reports, regardless of direction.

Analysts are overwhelmingly bullish towards SNAP. Of the 20 in coverage, 15 call the stock a "buy" or better. Echoing this, the 12-month consensus target price $63.19 is a whopping 97.8% premium to current levels. 

 

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