Snap Stock: Business Stabilization and Growth Potential Analysis
Why did Snap's stock drop below its IPO price?
Snap's revenue growth stalled due to challenges like Apple's iOS update and competition from TikTok and Instagram. The macro headwinds impacted its ad spending, particularly in North America.
Is Snap overcoming those challenges?
Snap's revenue growth returned, DAUs increased, and ARPU improved in the first quarter of 2024.
What about its margin and earnings growth?
Snap's operating margin improved slightly, and it aims for profitable growth with expected improved EBITDA margins in 2024.
Is Snap undervalued relative to its growth potential?
Snap's free cash flow is negative, but cost-saving efforts may lead to positive cash flow. However, its valuation is comparatively higher than Meta as it aims to narrow losses and improve free cash flow.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.