(Bloomberg) — Snap Inc. rallied on Monday, putting the shares on track for the highest close since mid-August, after the social-media company picked up another buy recommendation from RBC Capital Markets.
The stock rose as much as 6.7 percent in its third consecutive advance. At current levels, Snap is up 146 percent from its record low on Dec. 21.
Last week’s 7.4 percent gain was fueled by Snap’s announcement of a suite of new products and services, including a video-game business. Analysts praised the news, with at least two firms upgrading their view on the stock. The shares now have six buy recommendations, 23 holds and nine sells, according to data compiled by Bloomberg.
RBC Capital Markets, in an upgrade to outperform that was published after the market closed on Friday, cited product innovation and a potential return to growth in daily active users. Analyst Mark Mahaney also pointed to “early evidence that Android platform improvements are finally gaining traction.”
Social-media investors will also be watching Pinterest Inc., which is seeking to raise as much as $1.28 billion in an initial public offering expected later this month. The IPO could give the maker of online inspiration boards a market valuation of about $9 billion, which would value the company below the amount it reached in its last private valuation.
(Upgrades stock activity and chart to market open.)
To contact the reporter on this story: Ryan Vlastelica in New York at [email protected]
To contact the editors responsible for this story: Catherine Larkin at [email protected], Steven Fromm, Richard Richtmyer
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