Social Media Stock Gaps Lower Before Earnings

Analysts are already firmly bullish towards SNAP

Fernanda Horner

Digital Content Manager

Feb 2, 2022 at 1:06 PM

SNAP

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.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!