What Happened?
Shares of social network Snapchat (NYSE: SNAP) jumped 4.3% in the afternoon session after the company received a vote of confidence from investment firm Citizens JMP, which reiterated its "Market Outperform" rating and a $12.00 price target on the stock.
This endorsement comes despite the firm noting some potential near-term risks associated with a recent leadership change, specifically the hiring of Mary Ann Belliveau as the new president of North America Sales. While acknowledging that such a transition could create "potential turmoil," the reiterated positive rating suggests underlying confidence in the social media company's direction. The $12.00 price target represents a significant potential upside from its current trading levels. This analyst action appears to be a key driver for the stock's positive performance, signaling to investors that the firm's long-term outlook on Snap remains favorable.
After the initial pop the shares cooled down to $9.51, up 4.2% from previous close.
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What Is The Market Telling Us
Snap’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Snap is down 15.4% since the beginning of the year, and at $9.51 per share, it is trading 41.4% below its 52-week high of $16.21 from July 2024. Investors who bought $1,000 worth of Snap’s shares 5 years ago would now be looking at an investment worth $400.38.
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