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Stop Counting Snap Inc (SNAP) Stock Out Already

Mar 8, 2017, 11:07 am EDT
Stop Counting Snap Inc (SNAP) Stock Out Already

When it comes to IPOs, the gains can be ephemeral like, well, a Snapchat photo. Yes, after last week’s massive gains, Snap Inc (NYSE:SNAP) stock is coming under quite a bit of pressure. Granted, for those who were lucky to get SNAP at the offering price, there is not much to worry about. The gains are still quite lucrative. But, of course, only large institutions and mega wealthy investors got this sweetheart deal. Source: Shutterstock

Predicting such things as the beginning of a downward spiral in Snapchat stock, however, is more akin to gambling than in-depth analysis. Yet, there are still some things to keep in mind when it comes to playing SNAP.

First of all, there has been an avalanche of negative analyst reports. In fact, it’s kind of remarkable that Snapchat stock hasn’t fallen even more. So far, there are no “buy” recommendations. The consensus price target on SNAP shares is only $15.50, which compares to the current market value of $21 (the lowest price target is Pivotal Research Group’s lowly $10). This implies that there could be 26% or more in downside risk. Read 

Snap Inc. (SNAP): Snapchat IPO ALMOST Beats the Odds

Mar 3, 2017, 7:46 am EDT

They say you can place a bet in Las Vegas on almost any proposition. And while most of the action is on sports contests, the Snapchat IPO from Snap Inc. (NYSE:SNAP), I thought, would surely be attractive to visitors in the town’s sports books. Source: Shutterstock

And so it was that I went online in search of Las Vegas odds on the Snapchat IPO. Looking for any kind of prop that investors could hang their hats on when it came to handicapping SNAP stock coming out of the gate, I wasn’t able to find much.

However, a website called Las Vegas Sports Betting in November had five props available to bet on. These are taken directly from its site: Read 

Snapchat IPO: Lofty Snap Inc (SNAP) Walks on Eggshells

Mar 2, 2017, 12:33 pm EDT
Snapchat IPO: Lofty Snap Inc (SNAP) Walks on Eggshells

Snap Inc (NYSE:SNAP) has gotten off to a solid start with its initial public offering. So far in early trading, SNAP stock is up about 45%. So what’s next for investors? Are there more gains left? Source: Maurizio Pesce Via Flickr

Well, as I’ve noted before, the Snapchat IPO is likely to provide plenty of opportunities for short-term traders. Just some of the reasons include:

    The float is relatively small at 200 million shares. And 50 million will be locked-up for one year. As a result, it will not take much buying to move SNAP stock. The markets are extremely bullish right now. So investors generally have a healthy appetite to take on risks. There has been a dearth of hot IPOs. In other words, there is little choice, but for investors to focus on SNAP stock.

Yet, perhaps the biggest factor is that the company is still in the early stages of monetization. This means that — for the next couple quarters — there should continue to be substantial gains in revenues, which will certainly gin up lots of buzz for SNAP stock. Read 

Why Betting on the Snapchat IPO Is a Big, DUMB Move (SNAP)

Feb 27, 2017, 9:22 am EDT

A good Russian friend who worked as a product consultant once told me this: Americans are so stupid you can sell them the bricks to their own house. Of course, this is an outrageous statement, considering the current political backdrop. Most new homes are built from wood, not bricks. But it got me thinking about the hype regarding the upcoming Snapchat IPO. Source: Shutterstock

Are people really going to dive into SNAP? Haven’t the markets already learned their lessons from Twitter Inc (NYSE:TWTR)? Ha! People can be gluttons for pain.

I suppose this is the reason why movies like “50 Shades Darker” are so popular with both men and women. Not only that, the longer-term success of Facebook Inc (NASDAQ:FB) provides much-needed optimism for the Snapchat IPO. Read 

Can the Snapchat IPO Show Investors the Money?

Feb 4, 2017, 7:00 am EDT

Snapchat filed for its long-rumored IPO this week, and may go public as early as March. Because the photo-sharing app has so many users, anticipation ahead of its offering could approach Facebook Inc (NASDAQ:FB) and Twitter Inc (NASDAQ:TWTR) levels. But those are two very different paths.

Sure, both are uber-popular social media giants used around the world, but only one of them has had success as a public company.

After rocky start in the year following its ballyhooed May 2012 IPO, Facebook has morphed into one of the best growth stocks on the market, rising 243% since its debut. Read 

Snap Makes It Official: The Snapchat IPO Is On!

Feb 2, 2017, 5:15 pm EDT

UPDATE (2/16): Snapchat parent Snap Inc has set a valuation of between $16.2 billion and $18.52 billion for its upcoming initial public offering, according to a Reuters report. The company was expected to be valued between $20 billion and $25 billion.

We’re getting a Snapchat IPO in 2017 after all. Snap Inc., which operates the wildly popular Snapchat mobile app, has filed its S-1 with the Securities and Exchange Commission.

Terms of the deal were not set because this is the initial filing. But we do know that Snap Inc. plans to list on the New York Stock Exchange under the ticker “SNAP.” Read 

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