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Gabby Jones / Bloomberg
After a bad showing in early trading on Friday, investors appear to have changed their mind about Snap and its fourth-quarter results before noon, sending shares floating more than 9% to close at $ 63.46 .
Snap (ticker: SNAP) reported a mixed bag of results, beating expectations by hand but also predicting that the first quarter would see a larger-than-expected adjusted loss. Activists also warned of two potential negative effects for the first quarter: a halt in spending around the January attack on the U.S. Capitol; and change to
Apple
IOS software (AAPL) that powers iPhones and iPads may make it harder for the advertising company to target.
The midday reversal of the stock occurred amid several analyst price increases. More than 20 banks raised target prices on Snap stock, according to a Barron’s count based on FactSet data.
Wedbush analyst Michael Pachter described the company’s earnings report as “two steps forward, one step back.”
In a news release on Friday, Pachter clarifies that the company exceeded expectations in the fourth quarter, and says the company has enough space to make more money from each of their users. However, Snap’s guidance for this year suggests that it will spend heavily on its technology to keep people on the platform – it’s not always the best thing for the share price. Pachter raised its target price to $ 52 from $ 34.50 and repeated it equal to Hold’s rating.
UBS analyst Eric Sheridan also raised its target price, raising it to $ 70 from $ 62. In a messenger note, Sheridan wrote that he expects investors, over time, to become increasingly comfortable with long-term potential. company time. Sheridan expects much more details about the business’s future plans at its analyst day on Feb. 23. Sheridan is bullish on the stock and is buying estimates.
One of the few negative voices on the stock, Citi Research analyst Jason Bazinet, who has a Sell rating and a $ 29 target price, said one of the company’s adjusted profit measures in the first quarter forecast to level lower than expected than the consensus.
Of the 40 analysts covering Snap, 68% rate the Buy stock and 10% the Sell rating. The average target price is $ 58.76, which means a 7.7% drop from Friday’s closing price.
Pinterest
stock, on the other hand, opened with a strong display. Shares rose about 5% to $ 81.96 during regular trading, after the company reported a hard batch of yields late Thursday. Mar
Facebook
(FB) and others have reported, there was strong demand in the fourth holiday for online ads, which helped Pinterest report revenue far above the consensus forecast.
At least 10 analysts had enough of the results to raise their target prices on Thursday and Friday, according to a Barron’s count and FactSet data. Wall Street is generally positive about Pinterest shares, with 62% of analysts rating it as a Buy. Sell is not ranked.
Baird analyst Colin Sebastian wrote in a note on Thursday to news that Pinterest ‘s fourth – quarter results marked “one of the most compelling recovery stories of the year. Sebastian noted that the company’s developments in its advertising platform and the rise in e-commerce have greatly boosted its growth.
The average analyst’s target price for Pinterest shares is $ 89.90, which equates to a return of 9.7%. The stock has risen 274% in the past year, with the S&P 500 index gaining 18%.
Write to Max A. Cherney at [email protected]