Market Overview

Snap On Track For Big Quarter Based On August Download Data

Share:
Snap On Track For Big Quarter Based On August Download Data

Snap Inc (NYSE: SNAP) has put up a strong performance in 2020, and one analyst said Tuesday the company’s latest numbers from the month of August suggest Snap’s momentum is continuing in the second half of the year.

The Snap Analyst: Bank of America analyst Justin Post reiterated his Buy rating and $28.50 price target for Snap.

The Snap Thesis: Post said Snap’s monthly ad manager user count is up 7% to 421.7 million since the end of the second quarter. Post said growth numbers in Europe over the past two months are particularly impressive, including France (12%), Germany (12%) and the UK (9%).

SensorTower app download data for August was also extremely impressive. Downloads were up 29% year-over-year in August compared to 9% growth in July. Post said Snap had the largest number of gross monthly downloads in August than in any month since May 2019. US downloads were down 6% in August compared to a 19% decrease in July.

With the U.S. election fast approaching, Post is also tracking the ramp in political ad spend and pricing. Snap had an estimated $525,000 in political ad spending in August at $5.25 CPMs, up from $3.07 CPMs in July.

“We believe Snap and 3P data points suggest a solid month of August, though September is the most important month in 3Q and uncertainty remains in forecasting spending/engagement around back to school,” Post wrote in a note.

Benzinga’s Take: Snap guided for above 20% revenue growth for the third quarter, which is a high bar to clear. However, numbers from July and August suggest Snap is on track to report an impressive quarter assuming it stays on track in September.

Related Links:

How TikTok's Value Per User Compares To Facebook And Other Social Media Platforms

TikTok Has Taken Over: Here Are The Big Money Players Behind The Social Media App

Latest Ratings for SNAP

DateFirmActionFromTo
Oct 2020JefferiesMaintainsBuy
Oct 2020KeyBancMaintainsOverweight
Oct 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for SNAP
View the Latest Analyst Ratings

 

Related Articles (SNAP)

View Comments and Join the Discussion!

Posted-In: Bank of America Justin PostAnalyst Color Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
MSFTStifelMaintains245.0
TXRHJP MorganMaintains67.0
SBUXJP MorganMaintains82.0
MCDJP MorganMaintains220.0
CMGJP MorganMaintains1,115.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com