Snap (NASDAQ: SNAP) stock price topped market averages and broader market indices in fiscal 2019. Its share price rally of 180% in the past twelve months stunned investors and market pundits. Fortunately, the sentiments are positive about future performance despite a sharp rally in the past couple of quarters.
Snap stock price is currently trading around an all-time high of $18. The majority of analysts are expecting the share price to hit $25 mark in the coming days. This is because of its growth potential and improvement in financial numbers. The company has beaten revenue and earnings estimates for the third quarter.
Strong Financial Growth is Key for Snap Stock
Snap stock price has been receiving support from its financial growth. The company generated year over year revenue growth of 50% in the latest quarter. Its daily active users rose 13% year-over-year to 210 million in Q3.
Moreover, the company also reported a decline in losses and a boost in cash flows. Its third-quarter loss of $42 million decreased by $98 million from the year-ago period. On the other hand, operating cash flow grew $56 million and free cash flows increased $75 million from the past year period.
Its CEO Evan Spiegel said, “We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term. We are excited about executing on the many opportunities in front of us.”
Analysts are Bullish About Upside
Loop Capital increased Snap stock price target to $20 from $5, citing user engagement and strong revenue growth. Moreover, Aegis Capital has also set a Buy rating. The firm is incrementally positive on Snap’s user growth, especially outside the U.S. Its analyst expects the company to sustain revenue growth in fiscal 2020 amid increasing ad shares. Overall, the market sentiments are positive about SNAP share price performance.