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Why Is Snapchat Stock So Cheap?

Why Is Snapchat Stock So Cheap?

Andrew Willis:

Poor top- and bottom-line results, restructuring, and office closures may have caught the market’s eyes when it comes to Snapchat SNAP. But the company’s user base has been growing—and the outlook improving.

Senior equity analyst Ali Mogharabi sees some costs ahead in research, development, and marketing to attract and retain users, as well as bring more advertisers to Snapchat in the medium and long term.

Looking ahead, we see the potential for profitability by 2026. And while Snapchat may never reach the size of Facebook META in the future, reaching a similar degree of user monetization would be promising for patient investors.

For Morningstar, I’m Andrew Willis.

Check out Morningstar.ca to watch "Why Is Lululemon Stock So Expensive?"

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About the Author

Andrew Willis

Senior Editor
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Andrew Willis is senior editor for Morningstar Canada, covering stocks, alternative assets, funds, and personal finance. He is the writer and host of two weekly stock features, including Morningstar's Stock of the Week.

Willis previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor. He has also written for Thomson Reuters and CNN.

Willis holds a bachelor's degree in business administration from Bishop's University and a master's degree in journalism from the University of Hong Kong. Follow him on Twitter @Andrew_M_Willis.

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