Why Snap (SNAP) Stock Is Up Today

Max Juang /
2023/12/11 11:14 am EST

What Happened:

Shares of social network Snapchat (NYSE: SNAP) jumped 5.2% in the morning session after Wells Fargo analyst upgraded the stock's rating from Equal Weight (Hold) to Overweight (Buy) and raised its price target from $8 to $22, noting "reinvestment in ad tech stack, new ads management, and a renewed focus are materializing." The price target represents a potential 41% upside from where shares traded when the upgrade was announced. After the initial pop the shares cooled down to $15.78, up 4.6% from previous close.

Is now the time to buy Snap? Access our full analysis report here, it's free.

What is the market telling us:

Snap's shares are very volatile and over the last year have had 32 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The previous big move we wrote about was 11 days ago, when the company gained 6.5% on the news that Jefferies analyst James Heaney upgraded the stock's rating from Hold (Neutral) to Buy and raised the price target from $12 to $16. The price target implied a potential 15% upside from where shares traded when the upgrade was announced. The analyst added that the worst headwinds are behind and sees "a pathway back to revenue growth over the next three to five years."

Snap is up 78% since the beginning of the year. Investors who bought $1,000 worth of Snap's shares 5 years ago would now be looking at an investment worth $2,739.

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