Shares of Snap Inc. (NYSE: SNAP) are experiencing a volatile trading session, giving back early gains to trade in negative territory. As of 11:41 AM EDT, the social media company’s stock is priced at 0.06 or 0.65% for the day.
The stock’s intraday chart tells a story of a failed rally. After opening at $9.15, below its previous close of $9.27, SNAP shares surged to a session high of $9.33 shortly after the market opened. However, the stock was unable to sustain this momentum and has since trended consistently downward, approaching its daily low of $9.10. This reversal pattern suggests that sellers have taken control after the initial buying enthusiasm.
Key financial data for Snap shows a company that is still working towards profitability, with an EPS (TTM) of -0.31. The stock has no P/E ratio due to its negative earnings. On a positive note, its Beta (5Y Monthly) of 0.58 suggests it is less volatile than the overall market. The 1-year analyst target estimate for the stock stands at $9.70.
Should You Buy or Sell SNAP Stock Today?
The intraday action on SNAP presents a mixed picture for traders and investors.
For potential buyers, the stock is currently trading below the consensus analyst target of $9.70, which could imply some upside potential. The stock is also trading well off its 52-week high of $17.33, which some contrarian investors might see as an opportunity.
For potential sellers, the reversal from the day’s high is a significant bearish signal. The failure to hold gains indicates weakness and could suggest a further move down towards the session low. The underlying lack of profitability remains a core concern for long-term investors.
Our Opinion
Snap Inc. (SNAP) is currently in a precarious position. The inability to hold onto early morning gains is a classic sign of selling pressure and a lack of conviction from buyers. While the analyst target suggests modest upside, the stock’s performance today is not encouraging for the bulls. Investors should closely monitor whether the stock can find support at its daily low of $9.10 or if it will continue its downward trend. The fundamental challenge of achieving sustained profitability continues to be the most significant factor hanging over the stock’s long-term prospects.
