SNAP September 2023 EASY BULLISHWith a low RSI, the MACD is going positive. By the end of September, SNAP expects to be at 10.40. Begin gathering now. SNAP BULLISH
1SI trade ideas
SNAP: EASY 17.89 BEFORE NEXT EARNINGDespite the market consolidation, I agree that the SNAP sell-off was an overreaction. Big hands are attempting to shake off the Snap investors in order to move higher. Currently, large volumes are being bought as much as they can at below resistance, which is around 11.22, but if it breaks, we should expect 12.19 in no time. This is the time to start collecting shares, not wait. Big whales will force you to purchase you at a expensive price. I am bullish in Snap. GOING UP AFTER 08/07/2023
SNAP: Good move up very soonOn the chart, we see a wide consolidation channel, in which there is a set of positions and a new growth cycle for this instrument will soon begin. The first target is around $21.7, there is an unclosed gap. Look at the RSI, it is also approaching 30, which indicates that the instrument is oversold. The fair price today is ~ $36, if we apply the discounted cash flow system, so you can already form your positions in the long term.
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SNAP looks bullishJust broke out of the descending channel and may have found support on the WLB. Entry set on this level with another opportunity to add on the MLB. If level reaches here, I will look at some long dated options available that week.
Big divergence on Snab RS + its trading above the EMA on the weekly and looks like it going to cross on the monthly as well.
SNAP snapped out of consolidationSNAP has broken out of the consolidation and sustaining. Target is around 12.75. SL is closing below the TL.
SNAP Wedge This is Snap Wedge drop range watch the first resistance at 12.50 and dropping below 10.27 for the base channel drop to 8.74 before our retest lower high bounce to 11.10 followed by the drop correction to 8.10 region. IF we can recover watching the bounce and break above 8.74 to retest 11.10
Is the SNAP Sell Off overreaction a Reversal Setup?Yes, I think that it is. On the 15-minute chart, the price action of the post-earnings
drop is seen The earnings beat the analysts. Price has started a low momentum
recovery. The dual time frame RSI shows the low/blue line RS rising above the
high/black line. SNAP is in the deep oversold and undervalued territory in the area
of the lowermost intermediate-term anchored VWAP lines. The mass index indicator
triggered a reversal in the pre-market hours today. I will take a cautious long trade
here expecting a price appreciation to 11.8 at or below the mean black VWAP.or about
10%.
SNAP oversold -> V recoverySnap has often oversold on earnings, V recovery incoming.
Snap Inc. is an American camera and social media company, founded on September 16, 2011, by Evan Spiegel, Bobby Murphy, and Reggie Brown based in Santa Monica, California. The company developed and maintains technological products and services, namely Snapchat, Spectacles, and Bitmoji.
SNAP interesting setup going into earnings 👀recently saw rejection from pivot level/recent trend support that flipped to resistance. We are still holding above local trend support though..
bounce here and break of 14 leads to a big rally, break of local trend support/11.45 and we may see a nasty pullback.
boost and follow if this helped, thanks 💛
$SNAP After Earnings PlayNYSE:SNAP After Earnings Play, Everybody knows the three day rule where you wait 3 days after a stock reports earnings. You can wait 3 days to begin a starter position in NYSE:SNAP , there is a lot of support at these price levels.
Calls idea - bullish flagI have some calls expire 07/28 strike 13. Looks like the price is forming a bullish flag, and giving it a whole week to break out and buying just above the support. Mi risk is low.
It's time to manage SNAP after its earningFrom Investopedia, a channel occurs when the price of an asset is moving between two parallel trendlines. The upper trendline connects the swing highs in price, while the lower trendline connects the swing lows.
SNAP is in an ascending channel.
When the price hits the top of the channel, sell your existing long position and/or take a short position.
When the price is in the middle of the channel, do nothing if you have no trades, or hold your current trades.
When the price hits the bottom of the channel, cover your existing short position and/or take a long position.
During a rising channel, focus on buying near the bottom of the channel and exiting near the top. Be wary of shorting since the trend is up.
SNAP sells hard after earnings -20%snapchat drops in after hours despite beating numbers. Investor call mentions they are focused on getting free cashflow positive even if it means slower growth.
$SNAP EARNINGS Analysis, Key Levels & TargetsNYSE:SNAP EARNINGS Analysis, Key Levels & Targets
Implied move for earnings today is between 9.90-14.98 (20.42% move)
Everything you need to know to trade snap earnings… I like snap… I used it here and there with my little one… but how do they make money?
Am I trading it? No… but I used to and I saw it had earnings today so I pulled up the chart… GL, y’all…
$SNAP A Mixed BagAlthough it is up 43% YTD, Snap, Inc (NYSE: SNAP) is witnessing some concerning signs due to the slowdown in active users growth as well as the decline in average revenue per user. Based on these factors it is highly likely that the company misses on its revenue estimates in its Q2 earnings set to be released on July 25 after hours. Despite this, the company has been adding subscribers to its Snap+ service and could be on track for an EPS beat in its Q2 earnings. In light of this, SNAP stock could be one to watch closely ahead of its earnings.
SNAP Fundamentals
Decelerating Growth
SNAP’s position as a social media company means that user growth is its most important metric, since no matter how good the product, is no one is going to use a platform that no one else uses. This makes the decelerating user growth the company is seeing a major concern as its daily active users’ growth has been decelerating for 2 straight quarters now.
The decelerating growth can be attributed to the stagnation the North American market is seeing. SNAP has maintained 100 million DAU in North America for three quarters straight.
What makes this worse for SNAP is that North America has the highest average revenue per user (ARPU) amongst all regions, and countries outside of North America and Europe which are seeing the highest growth in DAU have the lowest ARPU.
Another thing to take into consideration is while North America has by far the highest ARPU compared to other regions, North America is currently seeing the lowest ARPU since Q2 2021. While it is concerning, it also means that SNAP still has room to improve its revenues if it can return to the previous levels of ARPU in North America.
Snap+ and My AI
While SNAP has suffered from slower growth in almost every area of its business, its subscription service Snap+ has grown more than 33% QoQ from 3 million subscribers to 4 million subscribers. With the subscription costing $3.99, that means that SNAP will realize around $48 million in quarterly revenue and $192 million annually from Snap+ alone. Furthermore, Evan Spiegel, SNAP’s CEO, said that more than 150 million users have used the new chatbot My AI since it was released to all of its users. While My AI can’t compete with other Large Language Models (LLMs) like Microsoft’s (NASDAQ: MSFT) ChatGPT, it can be another way that SNAP can increase its ad revenue since it can use sponsored links that are relevant to the conversation which it has already tested in May.
Q2 Forecast
Using SNAP’s DAU numbers for the last 6 quarters, its estimates for North America, Europe, and RoW are around 101.2 million, 95.6 million, and 202.89 million respectively. According to the linear regression trendlines in the chart below, total DAUs can be forecasted to be around 399 million users.
That would mean that SNAP’s revenues would reach $1.01 billion assuming the ARPU it recorded in Q1 2023 stays roughly the same. Adding revenue from the new one million subscribers to SNAP+ would make SNAP’s total Q2 revenues around $1.022 billion which is less than analyst estimates of $1.054 billion.
Furthermore, SNAP’s cost of revenue and operating expenses are expected to remain relatively flat according to management at around $440 million and $910 million, respectively. This means that SNAP would record a net loss of $328 million and an EPS of -$0.205, which is better than analysts’ estimates of -$0.247. For this reason, SNAP stock could be set to run on an EPS beat – especially with the stock trading near the lower trendline of its upward channel.
SNAP Financials
In its Q1 2023 report, SNAP’s total assets decreased 1.25% QoQ from $8 billion to $7.9 billion due to a decline in its accounts receivable. While its cash and cash equivalents increased 13% QoQ from $1.4 billion to $1.58 billion due to $100 million of free cash flow being generated in Q1 2023. SNAP’s total liabilities decreased by 2% QoQ from $5.4 billion to $5.3 billion.
Revenue also decreased 7% YoY from $1.06 billion to $0.988 billion due to the decline in ARPU. Operating costs stayed roughly the same compared to last year at around $914 million. While operating loss decreased 8.5% YoY from $351 million to $321 million due to an increase in interest income from investments in government securities. This all amounted to a net loss of $328 million – a 9% decrease YoY.
Technical Analysis
SNAP stock’s trend is bullish with the stock trading in an upwards channel. Looking at the indicators, the stock is trading below the 50, and 21 MAs which is a bearish indication, and above the 200 MA which is a bullish indication. Meanwhile, the RSI is neutral at 40 and the MACD is approaching a bullish crossover.
As for the fundamentals, the upcoming Q2 2023 earnings will be a catalyst for SNAP stock. If SNAP beats its EPS estimates it can cause its stock to maintain its momentum and run which makes the current PPS an attractive entry point ahead of earnings as the stock is currently testing the lower trendline.
SNAP Forecast
While SNAP is working on increasing its ad revenue using its My AI chatbot and its Snap+ subscription, it is currently seeing stagnation in its active users’ growth in North America – its biggest market revenue-wise. That said, there is a strong possibility SNAP stock runs post earnings as it may beat EPS estimates based on our calculations. With the stock trading at the lower trendline, bullish investors could find a good entry into SNAP stock at current levels in anticipation of its Q2 earnings on July 25 after hours.
Snap May Be Vulnerable as Earnings ApproachSnap has moved sideways for a year, but some traders may expect its prior downtrend to resume.
The first pattern on today’s chart is the series of bearish gaps following the last four quarterly reports. The social-media stock held its ground after those drops -- probably because it had already lost about 80 percent of its value in the preceding nine months. But now it’s had an entire year to consolidate.
Next, SNAP rallied about 75 percent between early May and mid-July along with the Nasdaq-100. Does that create space to the downside?
Third, Wilder’s Relative Strength Index (RSI) just hit its most overbought level since October 2020. That may represent a peak.
Recent sessions could also be viewed as a top, with a shooting star on July 13 and then solid candles as intraday highs got sold. SNAP ended that phase by closing below its 8-day exponential moving average (EMA).
All these points may be important with earnings tomorrow afternoon.
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SNAP Options Ahead of EarningsIf you haven`t sold SNAP here:
or ahead of the previous earnings:
Then analyzing the options chain and chart patterns of SNAP prior to the earnings report this week,
I would consider purchasing the 13usd strike price Calls with
an expiration date of 2023-7-28,
for a premium of approximately $1.34.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Use 09.15.2023 13/17 Call Vertical to trade SNAP into its ERThis is a bullish strategy with limited risk of $115.00 and limited potential reward of $285.00.
SNAP's weekly chart displays a double-bottom with a potential price target of $20.
Based on 25 Wall Street analysts offering 12 month price targets for Snap in the last 3 months. The average price target is $10.08 with a high forecast of $19.00 and a low forecast of $6.50.
SNAP continues to hold back bulls.Snap - 30d expiry - We look to Sell at 12.59 (stop at 13.59)
13 continues to hold back the bulls.
The primary trend remains bearish.
Preferred trade is to sell into rallies.
We are trading at oversold extremes.
We look for a temporary move higher.
12.94 has been pivotal.
In our opinion this stock is overvalued.
Our profit targets will be 10.09 and 9.59
Resistance: 12.35 / 12.94 / 13.50
Support: 11.64 / 10.80 / 10.00
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Snapchat Volatility Squeeze Setup
Snap has broken above all major daily, weekly, and monthly moving averages with the exception of the 20month which is about 75% higher than the current price.
The Bollinger Band Bandwidth is at a 19-month low which is a precursor to a volatility squeeze.
Accumulation/Distribution and On Balance Volume suggest upside breakout of current June sideways range.
This is a fairly risky swing trade with the Q2 report in a few weeks so I’ll keep an eye on the price action for a possible day trade entry and may hang on to some shares overnight and beyond depending on how things go. Call options may be appropriate here.
Can we snap $16 in coming weeks?NYSE:SNAP was forming an ascending triangle from Oct'22 and we broke the pattern in April upon earnings. But the market seems to be rushing back in the triangle again.
With that, the fair value estimated by analysts is $16 as well.
It'll be interesting to see if we can close above $10.8x and start moving upwards. The stock currently seems to be following an upward channel (marked in blue) and we're at a crossroad today.
Disclaimer: This is not financial advice. Please make your own decisions while making an investment.
