Solid News

Snap Inc. the Development of a Global Corrective Trend

11/11/2022 2:09 PM

The Shares of Snap Inc., the US company that owns the Snapchat messenger, are moving in a global corrective trend, trading at 10.00.

The negative pressure on the trading instrument continues, and the recent report by Bokeh Capital Partners LLC made things worse: in recent months, the advertising space in the US has been under negative pressure due to significantly reduced marketing and advertising budgets of leading brands. Snap Inc. traditionally depends on the amount of advertising content, and its significant decrease almost completely crossed out hopes for a possible profit of the company at the end of the year, against which Morgan Stanley analysts lowered their forecast for the issuer's shares and set the target price of 7.0 dollars, which is below the current 10.0 dollars.

The corporation reported on the work in the third quarter, and the figures were slightly better than forecasts: revenue was 1.13B dollars, which is better than the forecast of 1.12B, and the loss per share reached –0.220 dollars, which is better than the expected loss of –0.242 dollar.

In the short term, the positive is associated with hopes for a slowdown in the rate hike by the US Federal Reserve, which became possible against the backdrop of lower inflation in the US to 7.7%.

On the asset's four-hour chart, the company's papers continue to trade in the local downward channel, trying to consolidate above the resistance line.

Technical indicators gave a signal to buy: the histogram of the AO oscillator moved into the buying zone, and the range of fluctuations of the Alligator indicator EMA began to expand upwards.

Resistance levels: 11.30, 14.40. | Support levels: 10.00, 7.50.

Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2023