4 Reasons Investors Are Paying a Premium for Snap Stock

Snap's (NYSE: SNAP) stock rallied 60% over the past 12 months to a three-year high as the social media company shook off the bears with its consistent growth in revenue and users. However, Snap remains unprofitable, and its stock looks pricey at 16 times this year's estimated sales.

That's a frothy valuation compared to those of industry peers like Facebook (NASDAQ: FB) and Twitter (NYSE: TWTR), which trade at nine and eight times this year's sales estimates, respectively.

Let's discuss four reasons investors are paying a premium for Snap, and see if this hot stock still has room to run.

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Source Fool.com