Snap’s (NYSE:SNAP) stock climbed nearly 12% yesterday after an internal memo outlining strong financial expectations for 2024 was leaked to the public. As per a report by The Verge, CEO Evan Spiegel projects over 475 million daily active users in 2024, surpassing analyst predictions of 448 million. This upbeat outlook boosted investor confidence in SNAP stock, which has been facing challenges due to intense competition and declining ad revenues.
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In addition to user growth, the social media company expects to achieve more than a 20% year-over-year jump in advertising revenue and generate $500 million in non-advertising revenue in 2024. Moreover, Snap has guided for $500 million in adjusted EBITDA and a positive free cash flow in 2024. Finally, the company is targeting more than 14 million Snapchat+ paid subscribers by the end of next year.
Snap’s Upcoming Q3 Results
Snap is expected to release its third-quarter earnings on October 24. Ahead of the release, Monness’ Top-rated Analyst Brian White maintained a Hold rating on Snap stock. The analyst believes that the company’s internal challenges and competitive landscape could continue to impact its performance in the near term.
According to White, Snap continues to face challenges related to Apple’s (AAPL) privacy measures, the widespread popularity of TikTok, and the digital advertising dominance of tech giants Google and Meta Platforms (META). Despite these hurdles, White anticipates that SNAP will meet his Q3 revenue estimate of $1.126 billion with a projected loss per share of $0.02.
What is the Prediction for Snap Stock?
Snap continues to enhance its platform by introducing new features such as My AI, an AI-powered chatbot. It’s also collaborating with significant beauty brands to develop innovative advertising tools. Nevertheless, analysts prefer to remain on the sidelines due to widening operating losses in an intensely competitive market.
SNAP stock has a Hold consensus rating based on three Buys, 18 Holds, and three Sell ratings assigned over the last three months. At $9.84, the average Snap stock price target implies a limited upside potential of 1.23%.
