Shares of Snap Inc. (NYSE:SNAP) last traded at $18.05. (NYSE:SNAP) performance year to date is -26.27%. The 200 day simple moving average is -17.24%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.
Snap Inc. provides technology and social media services. The Company’s principal product Snapchat, is a camera application that helps people to communicate through short videos and images. Snap Inc. is headquartered in Venice, California.
An afternoon rebound was not enough to lift stocks out of the red on Thursday, and retail stocks across the board were dragged down following the latest round of weak earnings reports. Speaking of earnings reports, investors were also buzzing after Snap Inc.’s first ever report failed to impress and sent shares crashing.
The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 21.24 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 20.6986 is also higher than the current trading price depicting a bearish trend overall..
The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 31.64 suggesting a bearish price action.
Snap Inc. (NYSE:SNAP) is all set to announce its earnings on May 10/a. As per Zack’s analyst ratings, Snap Inc. (NYSE:SNAP) currently has an average brokerage rating of 2.65. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NYSE:SNAP) is $23.5 with a high of $31 and a low of $10.
As such, while we believe Snap Inc. (NYSE:SNAP) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.