2 Stocks You Should Take off Your Watchlist This Fall

: SNAP | Snap Inc.  News, Ratings, and Charts

SNAP – The central bank has dished out another 75 basis-point rate hike in its efforts to tame the decades-high inflation. With a recession expected to hit the economy soon, fundamentally weak stocks Snap (SNAP) and Palantir Technologies (PLTR) might be best avoided. Read on….

The Federal Reserve has again raised interest rates by 0.75%, marking the third mega interest rate hike in a row. This brings the benchmark interest rates to a new range of 3.0% to 3.25%, which is its highest level since 2008.

Jerome Powell has reiterated the central bank’s commitment to bring down inflation to a target 2% rate. Powell has also noted that a soft landing where the economy avoids a recession would be challenging. Officials now expect the rates to be 4.4% by the end of this year and 4.6% by the end of 2023.

Economist Nouriel Roubini, who had earlier predicted the 2008 crash, has predicted recession to hit the United States at the end of 2022 and spread globally in 2023, lasting the entire year. Roubini has also stated that high-interest rates do not look good for the rise in global debt accumulated during the pandemic.

Given this uncertain economic situation, fundamentally weak stocks Snap Inc. (SNAP) and Palantir Technologies Inc. (PLTR) might be best avoided.

Snap Inc. (SNAP)

SNAP operates as an international camera company. The company provides Snapchat, a camera application with various functionalities that enable people to communicate visually through short videos and images. 

For the fiscal second quarter that ended June 30, SNAP’s revenues increased 13.1% year-over-year to $1.11 billion. However, its non-GAAP net income decreased 120.5% from the prior-year quarter to a negative $29.60 million. Non-GAAP net income per share declined 120% from the same period the prior year to a negative $0.02.

The consensus EPS estimate of a negative $0.02 for the quarter ending September 2022 indicates a 111.8% year-over-year decrease. Likewise, the consensus EPS estimate for the fiscal year 2022 of $0.04 reflects a decline of 92% from the prior year.

The stock has declined 85.7% over the past year and 76.9% year-to-date to close its last trading session at $10.85.

SNAP’s POWR Ratings reflect this bleak outlook. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

SNAP has a Stability and Sentiment grade of F and a Growth, Momentum, and Quality grade of D. In the 65-stock Internet industry, it is ranked #60. The industry is rated F. Click here to see the additional POWR Ratings for SNAP (Value).

Palantir Technologies Inc. (PLTR)

PLTR engages in building and deploying software platforms for the intelligence community for assistance in counterterrorism investigations and operations. The company’s offerings include Palantir Gotham, a software platform that enables users to identify patterns hidden deep within datasets.

On September 20, PLTR announced its partnership with South Korean Hyundai Heavy Industries Group by bringing Palantir Foundry to additional companies within the conglomerate. The partnership expansion is expected to benefit the company, but the gains might be stretched over a long period.

PLTR’s revenue increased 25.9% year-over-year to $473.01 million in the fiscal second quarter that ended June 30. On the other hand, adjusted net income attributable to common stockholders and adjusted EPS stood at a negative $21.12 million and a negative $0.01, down 121.6% and 125% from the prior-year period.

Street EPS estimate of $0.02 for the quarter ending September 2022 indicates a 50% year-over-year decrease. Likewise, Street EPS estimate for the fiscal year 2022 of $0.05 reflects a decline of 61.5% from the prior year.

Over the past year, the stock has declined 71.1% to close its last trading session at $7.69. It is down 57.8% year-to-date.

It’s no surprise that PLTR has an overall D rating, which translates to Sell in our POWR Ratings system. The stock has an F grade for Sentiment and a D grade for Value and Stability. It is ranked #19 of 25 stocks in the Software – SAAS industry. The industry is rated F.

In addition to the POWR Rating grades we’ve stated above, one can see PLTR ratings for Growth, Momentum, and Quality here.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


SNAP shares were trading at $10.52 per share on Thursday afternoon, down $0.33 (-3.04%). Year-to-date, SNAP has declined -77.63%, versus a -20.09% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SNAPGet RatingGet RatingGet Rating
PLTRGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for November?

The S&P 500 (SPY) tumbled to end October. Is that a harbinger of more downside to come? Or will the bull market return with gusto? Investment pro Steve Reitmeister shares his time market views including a preview of his favorite stocks. Get the full story below...

3 Cybersecurity Stocks Defending Against Digital Threats

The demand for cybersecurity solutions is rising as digital threats and sophisticated cyberattacks continue to escalate. Therefore, it might be wise to keep track of cybersecurity stocks, CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT), as they offer innovative solutions presenting further growth opportunities. Continue reading...

3 Oil Stocks With High Upside as Global Demand Rebounds

The outlook for oil demand growth appears promising despite economic uncertainties and worldwide supply deficit. Amid this, investing in quality oil stocks Enterprise Products Partners (EPD), Marathon Oil (MRO), and Plains All American Pipeline (PAA) could be ideal as global demand rebounds. Read more...

3 Tech Stocks Under $10 That Could Deliver Big Gains

The technology industry is booming, driven by breakthroughs and significant government investments. Thus, incorporating affordable tech stocks, Sprinklr (CXM), Sabre Corporation (SABR), and Cricut (CRCT) into your portfolio provides an accessible entry point to capitalize on the industry’s growth. Read more…

2 Concerns for Investors in October

The S&P 500 (SPY) may be touching all time highs...but recent action points to concerns on 2 fronts: inflation and earnings. Investment veteran Steve Reitmeister shares his views on these 2 timely topics along with a preview of his top stocks to buy now.

Read More Stories

More Snap Inc. (SNAP) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SNAP News