Is it too late to invest in SNAP after shares surged 20% following Q2 results
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 23, 2021
- Snap Inc reported best quarter in four years on Thursday.
- Shares of the company opened about 20% up on Friday.
- Mitch Rivers says SNAP is not yet done with its bull run.
After reporting another blockbuster quarter late on Thursday, Snap Inc (NYSE: SNAP) is up about 20% in the stock market this morning. Compared to the year-ago period, shares of the social media company have now more than tripled, leading investors wondering if they’ve missed the boat already.
Mitch Rivers’ comments on CNBC’s “TechCheck”
RiverPark Capital founding partner Mitch Rivers, however, is positive that SNAP isn’t yet done with its bull run. On CNBC’s “TechCheck”, he said:
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
“It’s really hard to find durable growth businesses that are still at the early stage of a giant secular trend. They need a great management team, a big market, an ability to execute, a great business model; I think Snap has all of it. There’s always pullbacks in such stocks. But you should buy some today and wait and buy some more when it’s down.”
According to Rivers, Snap’s market-beating results despite Apple’s new operating system changes is a testimony that Snap has the ability to adapt and innovate around it. He further predicted that the impact was likely to remain limited in the future as well since Snap wasn’t dependent on Apple or Android and had a “direct relationship with its customers”.
Such an ability, as per Rivers, drives further optimism for the Santa Monica-based company as the technology space is known for its fast-changing landscape.
Social networks are the “cable nets of today” for advertisers
Rivers sees ads as a major source of revenue for social networks that he dubbed the “cable nets of today” for advertisers.
“Ads on Facebook cost about $50 a user, on Snap, it’s about $10 a user. Facebook’s ads per user are still growing 33%, so the growth of 100% plus at Snap means it is a long way from mature,” he added.
At the time of writing, Snap is valued at more than $121 billion.
67% of retail CFD accounts lose money
Stocks & Shares