How to buy Snap stock
Social media company Snap (SNAP), creator of the Snapchat app, is breaking new ground in the field of augmented reality and is in a good position to cash in as the metaverse develops. Innovations such as augmented reality (AR) shopping features are resonating well with teens and young adults. Meanwhile, the introduction of customizable ads has advertisers excited about reaching Snap’s massive consumer audience. Technology leadership in augmented reality is why Snap was selected as one of the best metaverse stock. For investors seeking exposure to the metaverse, Snap might be one of the top picks in the sector right now.
How do I buy Snap stock?
To buy Snap stock, you need to choose a broker and fund your account. As the central hub for your investing activities, it’s important to pick the best broker for your needs. Trading apps like Webull, TD Ameritrade, eToro, Charles Schwab, and Robinhood offer commission-free trading and fractional-share investing.
Should you buy Snap stock?
While most developers of the metaverse, like Meta Platforms, are creating an immersive virtual world, Snap has taken a different approach. Snap sees an opportunity in intertwining digital experiences with the real, physical world. It is a new approach that has been absent from most social media platforms in recent years. The company will keep pumping out new features and products to enrich its powerful community. So too may be Snap’s profit growth.
Analysts forecast that revenue this year could rise 37.1% to $5.65 billion. Next year, the company is forecast to have sales of over $8 billion ($8.05b), up another 42.5%. That could lead to a much higher stock price.
Is SNAP stock a good buy now?
SNAP stock bottomed out at $24.50 on Feb. 3, but as of Feb. 12, it had skyrocketed to $39.5, up 61%. However, year-to-date (YTD) the stock is still down 16% from $47 where it ended on Dec. 31.At close to $40 per share, Snap's stock trades at about eleven times its 2022 sales.
Social media stocks like Snap have been on a roller-coaster ride over the last year, buffeted by the pandemic. The isolation induced by the pandemic spurred millions of people around the globe to turn to social media platforms such as Pinterest (PINS), Etsy (ETSY) and Snap to stay connected. The stocks steadily climbed but then in a correction mode. For now, markets have dropped as investors grapple with the prospect of higher interest rates and mixed company earnings. So, Snap stock currently not a buy now.
