Snap Stock Can't Take Advantage of TikTok Ban Talks

Analysts are overwhelmingly bullish on the equity

Deputy Editor
Sep 18, 2020 at 10:06 AM
facebook X logo linkedin


The shares of Snap Inc (NYSE:SNAP) are in focus this morning, alongside social media peer Facebook (FB) after it was reported that the U.S. Commerce Department plans to ban downloading Chinese-owned apps WeChat and TikTok. The ban is slated to begin on Sept. 20, but could be rescinded by President Trump before it takes affect. 

Despite a 2% premarket gain, Snap stock is down 0.5% this morning to trade at $24.13. On the charts, SNAP has nearly tripled from its mid-March lows, and even despite today's breather remain a chip-shot from its July 8 all-time high close of $26.41. Meanwhile, Snap stock's supportive 100-day moving average has captured any pullbacks over the last five months. 

Analysts are incredibly bullish on Snap stock, with 19 of the 29 in coverage calling the security a "buy" or better. Plus, the security's 12-month consensus price target of $26.27 is an 8.1% premium to current levels.

A short squeeze could be fueling the security's climb. Short interest fell 20.6% in the two reporting periods. Still, the 65.97 million  shares sold short represent a healthy 7.3% of SNAP's total available float,.

Options traders will be pleased to note the equity's Schaeffer's Volatility Index (SVI) comes in at 51%, which ranks in the 15th percentile of its annual range. Simply put, volatility expectations look quite muted right now on Snap stock, which may be enticing for those looking to buy premium

 

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