SNAP
Snapchat, the social media app founded in 2011, is cutting 1,000 full-time jobs and closing 300 open roles...
Article Summary
HOLD- Snapchat, the social media app founded in 2011, is cutting 1,000 full-time jobs and closing 300 open roles as it ramps up AI-driven efficiency.
- Snapchat expects to save around $500m from the mass lay-offs and expects restructuring costs of up to $130m, with the majority of the cuts expected to occur in the second quarter.
- Snap has been under pressure from activist investors to restructure the business and replace swathes of staff with AI bots after losing another $460m last year, bringing its total accumulated losses since it was founded to almost $14bn.
- Chief executive Evan Spiegel has previously described Snap as facing a 'crucible moment' as it is trapped between larger tech giants and smaller start-ups, outlining plans to reach profitability by targeting higher-margin advertising and building subscription base.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 10.6% | 25% | 50.0 ptsMeets Minimum (10.6%) - Passes screener |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 28.1% | 20% | 75.0 ptsSignificant Upside (28.1%) - Target: $7.75 vs Current: $6.05 |
| Gross Margin % ? | 52.3% | 15% | 80.0 ptsVery Healthy (52.3%) - High-quality margins |
| Drawdown from 52-Wk High ? | -41.9% | 15% | 80.0 ptsSolid Dip (-41.9%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About SNAP
- Snap Inc. operates as a technology company in North America, Europe, and internationally.
- The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps.
- It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places.
- In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions.
- The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016.
- Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.