Why Snap Stock Got a Boost Today
Shares of Snap (NYSE: SNAP) got a boost on Thursday after the news media got hold of an internal memo from CEO Evan Spiegel. Analysts are responding favorably to the memo, and that's why Snap stock was enjoying a 10% jump as of 11:15 a.m. ET today.
As reported by tech news website The Verge on Wednesday, Spiegel has laid out a plan to Snap's employees calling for $6 billion in revenue in 2023 and over $1 billion in free cash flow (FCF). For perspective, as of the second quarter of 2022, the company has just over $4.5 billion in trailing-12-month revenue and $172 million in cumulative FCF.
In other words, Spiegel is calling for impressive growth over the next 16 months or so, turning Wall Street's head. For example, both UBS analyst Lloyd Walmsley and Bank of America analyst Justin Post were positive on news of this leaked memo and think Snap is a stock worth buying, according to The Fly.
Source Fool.com
