Why Snap's Shares Gained 12.6% Last Month

Shares of Snapchat owner Snap (NYSE: SNAP) rose 12.6% in January 2020, according to data from S&P Global Market Intelligence. The social media expert's stock kept climbing thanks to a steady stream of analyst upgrades ahead of the company's fourth-quarter report in early February.

Snap's shares gained at least 6% due to rosy analyst reports on January 9, 10, and 17. Common themes in these bullish notes include Snapchat's stable user growth, Snap's improving profit margins, and the prospect of delivering positive adjusted earnings for the fiscal year 2020. For example, Jefferies analyst Brent Thill raised his price target on the stock from $17 to $21 per share, arguing that Snapchat's ad revenue might double in three years.

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Source Fool.com