Earnings Reaction Sends Snap Stock Above IPO Price

Snap hasn't traded north of $17 since July

Feb 7, 2018 at 9:41 AM
facebook X logo linkedin


Shares of Snap Inc (NYSE:SNAP) have surged 22.5% out of the gate to trade at $17.24, lifting fellow social media stock Twitter (TWTR) along with it. The Snapchat parent reported better-than-expected fiscal third-quarter revenue of $285.7 million, and said its daily active users jumped 18% year-over-year to 187 million -- more than analysts were expecting. The company's adjusted quarterly loss of 13 cents per share was also narrower than the consensus estimate.

Wall Street has been quick to chime in on Snap's earnings. While J.P. Morgan Securities upgraded the stock to "neutral" from "overweight," RBC raised its rating to "outperform" from "sector perform." The latter brokerage firm also boosted its price target to $21 from $15 -- in territory not charted since last May.

Heading into today's session, SNAP stock had been lagging on the charts -- down almost 40% over the past nine months. What's more, the equity's rally off its mid-November lows near $12.25 was quickly contained by the newly formed 180-day moving average. However, today's surge has Snap shares trading north of their $17 initial public offering price (IPO) for the first time since July.

Nevertheless, Snap put options were pricing in remarkably low volatility expectations relative to their call counterparts. At last night's close, the equity's 30-day implied volatility skew of negative 21.3% was ranked lower than 99% of all comparable readings taken in the past year.

 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI