Today’s Research Reports on Stocks to Watch: GoPro and Snap

NEW YORK, NY / ACCESSWIRE / March 23, 2017 / Both GoPro and Snap are popular technology companies that have had early successes. As time has moved on, they have run into serious long term competition from established competitors such as LG and Instagram, respectively. This is where the problem is for investors, as the focus for both companies needs to be on their long term prospects, as neither is currently positioned to make significant short term headway.

RDI Initiates
Coverage:

GoPro Inc. https://ub.rdinvesting.com/news/?ticker=GPRO

Snap Inc. https://ub.rdinvesting.com/news/?ticker=SNAP

GoPro’s shares fell $0.07 in Wednesday’s trading, to close at $8.33. The company recently announced a total of 450 layoffs and a reduction in operating expenses by more than $200 million to bring the company to profitability. These decisions were made after the company posted more than disappointing revenues for the last two quarters of 2016. Investment analysts are not impressed about the recent enthusiasm in the stock, maintaining that the issue is sales, not cost cutting.

Access RDI’s GoPro Research Report at: https://ub.rdinvesting.com/news/?ticker=GPRO

Recently, Snap has received two “buy” ratings in the last two days – one from Drexel Hamilton, the other from Monness Crespi Hardt. The stock closed on Wednesday up $1.44 a share to close at $21.82. The rise can be partly attributed to the buy signals but many investors are still questioning whether the buy signals are justified. There have been a number of popular high tech IPOs, but the unfortunate history is that the vast majority of them fail to make investor’s money over the long term. Examples include Zynga, Etsy, and GoPro, all who have registered double digit percentage losses. Facebook and Alibaba are the only two stocks that have justified investor’s optimism over the long haul. So why the “buy” ratings? Though Snapchat is currently not the choice of marketers, Drexel’s Brian White made its case for the recommendation by stating that “the company simply has a more popular product among millennials, which is clearly making the case for the prime 18-35 market demographic.” Drexel also supported the youthful key management positions of Chief Executive Spiegel and Chief Technology Officer Murphy by comparing them to Apple’s Steve Jobs and what he did with Apple at such a young age. Brian White predicted that Snapchat’s revenue would increase by 118% in 2017 and by 100% in 2018. Before Drexel’s “buy” ratings on today, Snap had a consensus rating of “underweight” with an average target price of $18.50 according to The Wall Street Journal.

Access RDI’s Snap Research Report at: https://ub.rdinvesting.com/news/?ticker=SNAP

Our Actionable Research on GoPro Inc. (NASDAQ: GPRO) and Snap Inc. (NYSE: SNAP) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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