Will Snap’s Improving Outlook Continue to Help Its Stock?
Snap (NYSE: SNAP) stock benefited from a massive comeback in 2019. Once flirting with penny-stock status, investors came back to Snap, and it now trades in the $19 per share range as of the time of this writing. This occurred as ad sales drove revenues higher, and the company made competitive gains against archrival Instagram.
However, the growth has made Snap stock relatively expensive. Moreover, Snapchat has not enjoyed the broad appeal of its peers. Although Snapchat can probably maintain a significant audience, its benefits may not continue to accrue to Snap stock investors.
Snap stock has more than tripled since being arguably left for dead one year ago. At that low point, it had fallen below $6 per share as Facebook (NASDAQ: FB) continued to co-opt its apps, and Instagram made a direct play for its teen and young adult base.
Source Fool.com
