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Will Snap Stock Reach $75 By 2022?

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Will Snap Stock Reach $75 By 2022?

Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

We surveyed a group of over 500 investors on whether shares of Snap Inc (NYSE: SNAP) will reach $75 by 2022. 

Snap Stock Forecast

Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat.

In the third quarter, Snapchat’s daily active users grew from 210 million to 249 million on a year-over-year basis, an 18% increase.

Snap generates nearly all of its revenue from advertising, with 88% coming from the U.S. The firm is headquartered in Santa Monica, California.

Taking a look at recent analyst ratings coverage for Snap, Heath Terry of Goldman Sachs maintained a Buy rating on shares and increased the price target from $47 to $70. 

See Also: How To Buy Snapchat Stock

Snap has announced a number of tech innovations and product partnerships since it reported third-quarter results Oct. 20, and a favorable macroeconomic backdrop increases the likelihood of above-consensus revenue growth in the fourth quarter and beyond, Terry said in a Dec. 29 note.

The company’s main social media stock competitors and platform alternatives include Twitter Inc (NYSE: TWTR), Facebook Inc (NASDAQ: FB) and Pinterest Inc (NYSE: PINS).

Fifty-eight percent of Benzinga traders and investors told us Snap would reach $75 per share by the end of next year.

Respondents who participated in our study told us Snap will continue to see strength in 2021 off recent analyst rating upgrades, as well as the continuing efforts the company has made in broadening its advertiser base and growing engagement on the platform. 

One of many efforts Snap has made to broaden their user base that investors cited was Twitter's Dec. 10 announcement that users will have an easier way to share tweets to Snapchat, an example respondents cited as Snap seeks to increase its daily active user count throughout the year. 

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This survey was conducted by Benzinga in December 2020 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 500 adults.

 

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