Snap Inc (NYSE:SNAP) reported impressive earnings results earlier this week, posting its first-ever quarterly profit, and one of Wall Street’s most famous pundits has suddenly swung bullish on the stock as a result.
As CNBC reports, Jim Cramer — who was formerly a staunch critic of the messaging app creator — is now recommending Snap as a buy:
“Sure, I was a skeptic, but after this quarter, I’m now a believer,” Cramer said. “In many ways, Snap reminds me of where Facebook was years ago when the company finally figured out how to address its mobile problem. So even though the stock skyrocketed up an astounding 47 percent today, it’s got a lot of run room and it is a natural to be bought.”
“There simply aren’t enough investable social media plays around,” he added. “The once-scorned Snap is now legitimate.”
Cramer also noted that the recent wide market sell-off has created a number of bargains that investors can take advantage of amid the chaos. “The same wild swings that have crushed the averages allow you to buy individual stocks at absurdly cheap prices if you’re simply waiting for them to come in,” he noted.
The venerable pundit recommends making a shopping list of high-quality stocks you want to own and buying them on any pullbacks. Now, he says, that list can include SNAP as well.
Snap Inc shares rose $0.16 (+0.77%) in premarket trading Thursday. Year-to-date, SNAP has gained 42.03%, versus a 0.30% rise in the benchmark S&P 500 index during the same period.