Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Melanie Schaffer

How To Trade Snap Stock Before And After Q3 Earnings Print

Snap Inc. (NYSE:SNAP) is set to print its third-quarter financial results after the markets close on Thursday. Analysts expect Snapchat's parent company to report an earnings loss of 1 cent per share on revenues of $1.12 billion for the quarter ending Sept 30.

Ahead of the earnings print, two analysts have weighed in on Snap. Both firms lowered their price targets:

  • Credit Suisse analyst Stephen Ju maintained an Outperform rating and lowered the price target from $29 to $22.
  • MKM Partners analyst Rohit Kulkarni maintained a Buy rating and lowered Snap’s price target from $17 to $15 on Oct. 14.

When Snap printed its second-quarter earnings report on July 21, the stock plunged 40% the next day and hit a new 52-week low of $9.34 on July 28.

For that quarter, Snap reported a 2-cent loss per share on revenues of $1.11 billion, missing the estimate of a loss of 1-cent per share on revenues of $1.14 billion. The negative earnings reaction was accelerated because the company didn’t provide third-quarter guidance.

From a technical perspective, Snap looks neutral heading into the event, having been trading in a sideways pattern between $9.50 and $11 since July 21. Of course, holding a position in a stock over earnings can be akin to gambling, as stocks can rise following an earnings miss and fall after reporting a beat.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Snap Chart: Snap was trading slightly lower, by about 1.9%, heading into its earnings print. The stock has seen low volatility recently but increasing volume, which indicates interest in Snap may be returning.

  • Snap has settled into a triangle pattern on the daily chart, making a series of lower highs and higher lows. Following the earnings print, traders can watch for the stock to break up or down from the pattern on higher-than-average volume to indicate future direction.
  • If Snap doesn’t react positively or negatively to its earnings, the stock is set to meet the apex of the triangle on Nov. 2 and traders and investors can watch for the stock to break form the pattern before that date.
  • Snap has resistance above at $11.11 and $12.84 and support below at $9.47 and $7.89.
See Also: New Social Media App That Asks Teens To Say Nice Things To Each Other Tops iPhone Downloads — Beating WhatsApp, Facebook
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.