SNAP Stock: What to Expect from Q1 Results?
Apr 19, 2022
With earnings season in full swing, Snap Inc. (SNAP) reports Q1 2022 numbers this Thursday, April 21st after the bell. As is often possible in earnings season, traders should be mindful that moves in Snap after numbers are released could move shares of Twitter (TWTR) or Meta Platforms (FB) if they indicate substantial shifts in the industry. This is especially true as all social media platforms fight to keep eyeballs on their apps as TikTok continues to draw the masses. Though even with the TikTok phenomenon, Snap still saw steady user growth from 2020 to 2021, rising from 354 million to 428 million.
Snap is currently valued at around $54 billion, still above Twitter ($36 billion), even after the recent Elon Musk hype. While not inducted into the S&P 500 yet, Snap would certainly sit comfortably in the index, outranking over 350 of the components by market capitalization. Likewise, Snap could easily fit in the Nasdaq-100 index, if it traded on the Nasdaq. While Snap and Twitter both trade on the New York Stock Exchange, Nasdaq-traded Meta Platforms (FB, formerly Facebook), is now valued at $586 billion, still standing as the behemoth of the social media space thanks to Facebook, Instagram and WhatsApp.
To trade Snapchat, Meta, and Twitter Stock, open an account on tastyworks
Snap spent most of the time pre-pandemic trading below $20 per share before falling below $10 in March of 2020. Snap then participated in the seemingly relentless tech rally of late 2020 and much of 2021, climbing to a peak price of $83.34 last September, before a drastic post-earnings drop in October. While not on its lows, the stock remains far off the highs, below $35 per share. Twitter and Meta are also struggling though Twitter did receive some help recently due to the takeover bid by Elon Musk.
The financials for Snap are definitely trending in the right direction. The $848 million in gross profit last quarter was by far their best on record. This was a 61% increase over the prior year’s Q4 gross profit and 170% increase over Q4 2019. This growth was fueled by both an increase in revenue and a declining cost of revenue which were about 42% and -16% respectively from Q4 2020 to Q4 2021.
The trouble for Snap the last few years has been extremely high expenses relative to overall revenue. Though admittedly the $25 million operating loss reported for Q4 was the smallest on record. This was a 74% drop in the operating loss compared to the same quarter a prior year. Investors are hopeful Snap can continue these positive trends into 2022.
Even with Snap's implied volatility over 100%, roughly 5 times higher than the S&P 500, bullish investors should be cognizant the market is not expecting Snap to retouch that high above $80 anytime soon. However, as it stands right now, there is about a 22% chance of Snap being above $80 on January 19th, 2024 (Option expiration for that month).
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
Apr 13, 2022
Apr 4, 2022
Therein lies the challenge for gold prices in Q2’22: unless there is a dramatic escalation in the conflict between Russia and Ukraine that ensnares the European Union and the United States into a protracted dispute, the catalyst that drove gold prices higher in recent months is likely to be short-lived.
tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com.
tastytrade is a trademark/servicemark owned by tastytrade.
tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.
Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.
Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.