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Snap Inc Class A SNAP

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PREMIUM

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PREMIUM

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PREMIUM

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PREMIUM

Snap’s Strong Q2 Results Are Indicative of Ongoing Strength in Digital Advertising; Raising FVE to $74

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

While we’ve been expecting digital advertising to accelerate this year, Snap’s second-quarter results were still very impressive. Both the top and bottom lines easily surpassed our internal projections and FactSet consensus estimates. We have increased our fair value estimate to $74 (from $68) as we believe Snap continues to progress toward providing full-funnel offerings to advertisers of all sizes, which should help retain clients and drive higher ad spending by each. Snap executed well during the pandemic as it enhanced its direct-response offerings, whose growth is now accompanying the resurgence of brand advertising. Growth in Snap’s user count and user monetization were also impressive.

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Company Profile

Business Description

Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe. The firm has approximately 158 million daily active users. Snap generates nearly all of its revenue from advertising with 88% coming from the U.S. The firm is headquartered in Venice, California.

Contact
2772 Donald Douglas Loop North
Santa Monica, CA, 90405
T +1 310 399-3339
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 3,863

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