Please ensure Javascript is enabled for purposes of website accessibility

Why Snap, Inc. Stock Popped Today

By Steve Symington - Oct 11, 2017 at 5:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

According to one analyst, advertisers may finally be embracing the recently IPO'd social-media company.

What happened

Shares of Snap Inc. (SNAP 0.30%) climbed 11.4% on Wednesday after Credit Suisse analyst Stephen Ju upgraded the social-media company. More specifically, Ju increased his per-share price target on Snap stock from $17 to $20, representing a staggering 39.5% premium from yesterday's close.

Stock market data overlaying a world map


So what

To justify his bullishness, Ju argued that Snap's recent launch of ad products -- including its Snap Publisher tool, which allows advertisers to easily cut vertical ads in just minutes -- "should bolster the incentive to test the platform." 

"While we concede that it has taken longer than anticipated," he elaborated, "we submit that Snap is taking the necessary steps in the background to reduce friction against incremental ad budget allocations."

Now what

Snap is also taking additional steps to increase visibility for its advertising platform. Ju hopes to see its momentum building in the third and fourth quarters of this year.

Snap is slated to release third-quarter results early next month, so investors will need to wait until then to see if Ju's optimism is merited. But with shares still trading nearly 50% below their 52-week high and well below Snap's $17 IPO price, it's no surprise to see the stock rebounding today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Snap Inc. Stock Quote
Snap Inc.
$13.17 (0.30%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.