: Snap stock gains after upgrade
AFP/Getty ImagesShares of Snap Inc. SNAP are up 6.5% in Tuesday morning trading after Atlantic Equities analyst James Cordwell upgraded the stock to overweight from neutral. “Through best-in-class innovation the company has transformed from a messaging-centric app to a broad content platform,” he wrote, which has prompted users to spend more time doing monetizable activities through the service. Time spent on messaging, a “low value” activity, has been relatively stable, Cordwell said, while time spent on features like shows and watching spotlight content is up. Cordwell sees momentum for Snap’s advertising products and expects that the company’s product pipeline “could significantly augment revenue in the medium term,” in turn helping Snap close the gap versus rivals that see better average revenue per user. Snap shares have gained 16% over the past three months as the S&P 500 SPX has risen about 9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.