{"id":24926,"date":"2017-03-23T06:43:01","date_gmt":"2017-03-23T06:43:01","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=24926"},"modified":"2017-03-23T06:43:01","modified_gmt":"2017-03-23T06:43:01","slug":"snap-pops-9-percent-after-winning-second-buy-recommendation","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/snap-pops-9-percent-after-winning-second-buy-recommendation.html","title":{"rendered":"Snap pops 9 percent after winning second buy recommendation"},"content":{"rendered":"

\n\tSnap pops 9 percent after winning second buy recommendation<\/span><\/span><\/strong><\/span>
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\n\tSnap pops 9 percent after winning second buy recommendation:- Shares of Snap Inc (SNAP.N) jumped 9 percent on Wednesday after the owner of messaging app Snapchat received a second analyst "buy" rating following a red-hot public listing this month and with Wall Street skeptical about its lofty valuation.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe listing on March 1 was the largest by a technology firm in three years, but trading has been volatile, with many investors critical of lack of profitability and decelerating user growth.<\/span><\/span><\/span>\n<\/p>\n

\n\tSnap's stock was up 7.1 percent at $21.84 early Wednesday afternoon and traders bought call options contracts at the fastest pace since they first became available on March 10, according to options analytics firm Trade Alert.<\/span><\/span><\/span>\n<\/p>\n

\n\tA call conveys the right to purchase shares at a fixed price and is usually used to bet on share price gains.<\/span><\/span><\/span>\n<\/p>\n

\n\tIn the newest vote of confidence for Snap, Drexel Hamilton analyst Brian White on Tuesday launched coverage with a "buy" rating and a $30 target price.<\/span><\/span><\/span>\n<\/p>\n

\n\t"We view Snap as a platform for the imagination that unlocks the creativity of its users and allows uninhibited expression with friends. Snap is a fun place to spend time which can be monetized," White wrote in a note to clients.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Los Angeles-based company's app, which allows users to share short-lived messages and pictures, is popular with young people but faces intense competition from larger rivals such as Facebook Inc's (FB.O) Instagram. Snap has warned it may never become profitable.<\/span><\/span><\/span>\n<\/p>\n

\n\tBased on the analysts' average buy, sell and neutral recommendations, Snap has the second-worst rating among 282 U.S. companies that have a market capitalization of at least $20 billion, according to Thomson Reuters data. The worst-rated is Sprint Corp (S.N).<\/span><\/span><\/span>\n<\/p>\n

\n\tMost analysts do not expect the stock to rise over the next year.<\/span><\/span><\/span>\n<\/p>\n

\n\tIncluding White, two analysts now recommend buying Snap's stock, while five recommend selling, and four have "neutral" ratings, according to Thomson Reuters data. Their median price target is $21.<\/span><\/span><\/span>\n<\/p>\n

\n\tIn its first two days of trading, Snap surged 59 percent from its $17 initial public offering price.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-snap-stocks-idUSKBN16T2GE<\/span><\/span><\/span><\/p>\n

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