Snap Stock Sinks: Here's Why That's a Buying Opportunity
It's no secret the global economy is in rough shape right now. Inflation remains elevated and interest rates continue to rise, which has pressured consumers' spending power. As a result, businesses have slashed their marketing budgets for fear of a lesser return on their investment.
Companies in digital industries like social media rely on advertising to generate revenue, so the last 12 months haven't been easy for them. (NYSE: SNAP), which is the parent company of Snapchat, has struggled more than most. Investors sent its stock price plunging almost 20% the day after it released its financial results for the second quarter of 2023 (ended June 30), and it's now down 87% from its all-time high.
Snap's advertising revenue sank once again, and it issued a weak forecast for the coming third quarter. But there were bright spots, so here's why the steep decline in Snap stock might be a great buying opportunity for the long term.
Source Fool.com
Snap Inc Stock
Currently there is a rather positive sentiment for Snap Inc with 11 Buy predictions and 5 Sell predictions.
On the other hand, the target price of 14 € is below the current price of 15.51 € for Snap Inc, so the potential is actually -9.75%.
