Snap Inc. (SNAP - Get Rating) is a camera company. The company’s flagship product, Snapchat, is a camera application that helps people communicate visually with friends and family through short videos and images called Snaps. The company has approximately 319 million daily active users.

The stock has gained 8.4% over the past month based on a “Market Outperform” and a $42 price target received from JMP Securities. The expected removal of the popular short-video app TikTok from Google’s Play Store and Apple’s App Store also supported SNAP’s performance.

Brendan Carr, one of the Federal Communications Commission (FCC) commissioners, shared a letter via Twitter to Apple’s CEO Tim Cook and Alphabet CEO Sundar Pichai, pointing out that the reports and developments made TikTok non-compliant with the app store policies of the respective companies.

TikTok has been under fire lately after reports of its parent company ByteDance accessing U.S. user data multiple times as audio clips from numerous meetings held by the company were leaked.

Carr said, “TikTok is not what it appears to be on the surface. It is not just an app for sharing funny videos or meme. That’s the sheep’s clothing. At its core, TikTok functions as a sophisticated surveillance tool that harvests extensive amounts of personal and sensitive data.”

SNAP’s stock has declined 72% in price year-to-date and 78.9% over the past year to close the last trading session at $13.17. SNAP is currently trading 84.2% below its 52-week high of $83.34, which it hit on September 24, 2021.

Here’s what could influence the performance of SNAP in the upcoming months:

Mixed Financials

SNAP’s revenue increased 38% year-over-year to $1.06 billion for the first quarter ended March 31, 2022. The company’s SNAP - Get Rating) Stack Up Against Its Peers?

SNAP has an overall POWR Rating of F, equating to a Strong Sell rating. Therefore, one might want to consider investing in other Internet stocks with a B (Buy) rating, such as Yelp Inc. (YELP - Get Rating), trivago N.V. (TRVG - Get Rating), and Travelzoo (TZOO - Get Rating).

SNAP shares rose $0.22 (+1.67%) in premarket trading Friday. Year-to-date, SNAP has declined -72.00%, versus a -19.84% rise in the benchmark S&P 500 index during the same period.

About the Author: Dipanjan Banchur

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...

More Resources for the Stocks in this Article