Snap Stock Sheds More Than 35% After Earnings

Options volume is running at 10 time the intraday average

Deputy Editor
Jul 22, 2022 at 11:00 AM
facebook X logo linkedin

The shares of Snap Inc (NYSE:SNAP) are down 35.5% at $10.57 at last check, dragging down the broader market after the company reported dismal second-quarter results. The Snapchat parent announced losses of 2 cents per share, which were in line with analysts' estimates, while revenue fell below forecasts. The company also reported its slowest sales growth ever, and predicted flat sales for the current quarter as current economic conditions and competition for digital ad dollars weigh.

In response, SNAP has garnered plenty of analyst attention. At least 19 brokerage firms lowered their price targets, while no fewer than 10 downgraded the equity. J.P. Morgan Securities issued arguably the most damning note, slashing its rating to "underweight" from "overweight," and cutting its price target to $9 from $24.

Coming into today, covering brokerages were optimistic on Snap stock, with 18 of 24 in coverage recommending a "buy" or better, against six "hold" ratings. What's more, the 12-month consensus price target of $19.78 is a massive 90.1% premium to current levels, leaving the shares exceptionally vulnerable to additional downgrades and/or price-target cuts.

Options traders are ramping up their activity today, with 269,000 calls and 235,000 puts across the tape so far, which is 10 time what's typically seen at this point. Most popular is the weekly 7/22 11-strike call, followed by the 10-strike put in the same series, with new positions being opened at both.

Today's losses, should they hold, will mark the worst day the equity has ever seen, save for a massive late-May slide that came after the company issued a dire warning. Snap stock earlier hit a fresh two-year low of $10.37, and just breeched a recent floor at the $12 level. Year-to-date, SNAP is off 77.7%. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI