- Snap is now trading at the price it was at before its disastrous third-quarter earnings report.
- Shares plummeted by as much as 18% after missing revenue and user growth numbers.
- Barclay’s released a report recently that placed an $18 price target and an overweight rating on Snap.
- Watch the price of Snap move in real time here.
Shares are trading up 0.53% at $15.15 apiece on Monday. That’s above the $15.12 its share price settled at right before its third-quarter earnings report badly missed Wall Street’s revenue expectations. At the time, the company also reported a measly 3% user growth, adding 4.5 million users when Wall Street was expecting around 8 million.
After reporting the disappointing earnings, Snap shares plummeted about 18%, reaching $12.38.
The morning after, Tencent announced it had purchased a 10% stake in Snap, equivalent to about 145.8 million nonvoting shares.
Snap has rebounded with the help a Barclays research note that put an $18 price target on its shares. Barclay’s said that the company has a chance to reverse the negative story surrounding the company and start growing its revenue and users.
The company is currently rolling out a redesign of its app, it’s biggest in history, that could spark more users and engagement than before, Barclays said. The redesign separates content from friends from content from brands and celebrities, and it begins to arrange content using an algorithm.
Snap is still trading 11% below its initial offering price of $17.