Should you buy Snap stock ahead of Q2 earnings? Jim Cramer thinks so
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Jul 20, 2021
Snap Inc (NYSE: SNAP) reports its quarterly financial results later this week, on July 22nd. Ahead of the earnings report, investors are wondering if the stock is a buy?
Mad Money host Jim Cramer seems to think so. On CNBC’s “Squawk on the Street”, he noted that the $94 billion social media company expects to report a massive 84% annualised growth in revenue as he rated the stock at ‘buy’.
Snap’s Spotlight is growing rapidly
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Cramer was particularly confident of ‘Spotlight’, which now has over 125 million users and is available in 14 countries, as a major driver of growth for Snap.
People keep looking at it. It’s like TikTok. You can’t get TikTok, buy some Snap, he said.
In the prior quarter (Q1), Snap reported the fastest growth in revenue and added record users in three years. The Santa Monica-based company is likely to deliver the same this quarter as well.
Snap is up about 2% in the stock market on Tuesday. On a year-to-date basis, the stock is now up more than 20%.
Snap Inc earnings preview
Wall Street is calling for year-over-year growth in DAUs to remain sequentially unchanged at about 22% in the second quarter. The forecast translates to 290.6 million daily active users for Snap at the end of June.
While the growth is expected to be more conservative in North America and Europe at 5% and 11%, respectively, analysts predict the rest of the world to see a much broader 52% increase in DAU’s this quarter.
Considering that Snap has so far been a laggard in terms of international growth compared to rivals, the aforementioned numbers are likely to woo the investors. Snap also expects to further contract its adjusted EBITDA in Q2 to $20 million loss tops.
67% of retail CFD accounts lose money
Stocks & Shares