A Long Term Skeptic Now Has a


 
 
01:59 03/16/2019

Shares of Snap SNAP  were soaring over 10% on Thursday on news that a long-time skeptic of the stock has changed his tune.

BTIG analyst Richard Greenfield has given the stock a 'buy' rating for the first time and has even said the stock could soar 50% over the next 12 months.

He wrote in a note, 'We are increasingly confident that overseas direct response/performance advertisers are taking advantage of low relative bid prices.'

“Your initial reaction is likely why now and what changed, as virtually everything that could go wrong for Snapchat over the past couple years since going public has gone wrong,” Greenfield wrote. “Performance advertisers are laser focused on return on investment and spend (and spend more) where they see a compelling return.”

“We are increasingly confident that overseas direct response/performance advertisers are taking advantage of low relative bid prices on ad inventory in the U.S.,” he said.

“The good news for Snapchat is that performance advertising can scale rapidly enabling meaningful revenue beats,” Greenfield added. “It is critical for Snapchat to convince higher quality brands of the performance ROI that can be found on the platform.”

It's also been reported that Snap will be launching its new gaming platform as soon as next month.

According to a Cheddar report, dubbed internally as “Project Cognac,' the platform will include several games created by outside developers that will be programmed to operate in the photo-sharing Snapchat app.

Snap will reportedly reveal its new platform at the media company’s first-ever summit for content developers and partners in Los Angeles on April 4.

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This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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