Own Facebook Stock? Here’s Why Snapchat Should Be On Your Radar

By | April 26, 2016

Scalper1 News

alt : http://feedproxy.google.com/~r/InternetTechnologyRss/~5/wEDtx60LrXw/snapchat042616_sd.mp4http://feedproxy.google.com/~r/InternetTechnologyRss/~5/wEDtx60LrXw/snapchat042616_sd.mp4 Loading the player… Social media stocks Twitter ( TWTR ), Facebook ( FB ) and LinkedIn ( LNKD ) all report quarterly earnings this week, with one analyst saying digital media investors should have privately held Snapchat on their radar “at a minimum.” SunTrust Robinson Humphrey on Monday said that Snapchat’s users are growing, potentially taking away some growth from Facebook, Instagram and Twitter. Snapchat users also have deeper engagement, which is taking more time away from other platforms. And advertisers are shifting some of their budgets to Snapchat, which puts the advertising revenue of the publicly traded players at risk. SunTrust says Twitter is most at risk from Snapchat’s rise. The disappearing picture app now has a valuation of about $16 billion, while Twitter has a $12 billion market cap. Twitter reports after the close on Tuesday. Analysts see revenue up 39%, while earnings jump 43%. Shares are in an extended downtrend and are trading nearly 60% below their 52-week high. Twitter rose 2.8% intraday. Meanwhile, the Wall Street Journal reported Monday that Facebook is developing a “stand-alone camera app” that could be seen as a rival to Snapchat. The report comes as Facebook’s demographics continue to skew older, while Snapchat — which turned down a $3 billion buyout from Facebook a few years ago — has a strong hold on the teen market. The social networking giant is expected to see earnings and sales rise 48% when it reports after the close on Wednesday. Shares are trading 6% below a cup-with-handle buy point at 117.09. The stock is trying to find support at the 50-day line for a third straight session, but it’s just below that level intraday on the stock market today  as it falls a fraction. Meanwhile, LinkedIn reports Thursday. Earnings are projected to rise 5%, much slower than the 54% bottom-line growth seen last quarter. The stock is trading more than 50% below its 52-week high. LinkedIn climbed 2.5% Tuesday. Scalper1 News

Scalper1 News

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