1 Stock Down 18% to Buy and Hold for 10 Years
The recent stock market sell-off is dragging down many corporations, including Snap (NYSE: SNAP), a social media specialist. Though the company ended 2024 with strong momentum, its shares have declined by 18% since January. Still, there are good reasons to be bullish on Snap. The company's long-term prospects look attractive despite a turbulent past few years. Read on to find out more.Snap, the parent company of Snapchat, became publicly traded in March 2017. Since then, the company's performance has not been impressive, to put it mildly. The tech leader has encountered several problems. To name just three of those issues: Some social media platforms copied its signature self-destructing pictures and videos model; an iOS software update made it harder for the company to launch targeted ads; and a significant slowdown in ad spending amid economic challenges led to worse-than-expected revenue.The result has been inconsistent top-line growth and persistent net losses, which is not a recipe for success for any company. However, Snap's financial results for much of last year, including the fourth quarter, were pretty strong. The company's revenue of $1.6 billion for the period was up 14% compared to the year-ago quarter. Snap turned in a net income of $9 million compared to a net loss of $248 million reported in Q4 2023, while its adjusted earnings before interests, taxes, depreciation, and amortization (EBITDA) landed at $276 million, up 73% compared to the year-ago period.Continue reading
The recent stock market sell-off is dragging down many corporations, including Snap (NYSE: SNAP), a social media specialist. Though the company ended 2024 with strong momentum, its shares have declined by 18% since January. Still, there are good reasons to be bullish on Snap. The company's long-term prospects look attractive despite a turbulent past few years. Read on to find out more.
Snap, the parent company of Snapchat, became publicly traded in March 2017. Since then, the company's performance has not been impressive, to put it mildly. The tech leader has encountered several problems. To name just three of those issues: Some social media platforms copied its signature self-destructing pictures and videos model; an iOS software update made it harder for the company to launch targeted ads; and a significant slowdown in ad spending amid economic challenges led to worse-than-expected revenue.
The result has been inconsistent top-line growth and persistent net losses, which is not a recipe for success for any company. However, Snap's financial results for much of last year, including the fourth quarter, were pretty strong. The company's revenue of $1.6 billion for the period was up 14% compared to the year-ago quarter. Snap turned in a net income of $9 million compared to a net loss of $248 million reported in Q4 2023, while its adjusted earnings before interests, taxes, depreciation, and amortization (EBITDA) landed at $276 million, up 73% compared to the year-ago period.
