Bank of America upgraded Snap to ‘buy’ from ‘neutral’
Bank of America upgraded the social media company and said it had higher conviction it would continue to expand its average revenue per user.
“Based on:
1) Stock has sold off recently despite solid industry ad spend checks,
2) Ongoing Discover content rollout (8 new shows this fall) gives us higher conviction on realizing potential Snap ARPU expansion,
3) the secular tailwind from OTT traction taking linear TV time, benefitting Online video ad spend,
4) 4Q expected to be Snap’s first positive EBITDA quarter, changing the narrative, and
5) recent public CEO comments suggest better appreciation of need for stock performance.”