The social media company recently surprised investors with healthy growth in revenue and users. Worries about rivals like Facebook and TikTok also faded as the company’s overall performance improved.
We believe Snap is a very compelling buy stock, and we will show you why.
- Stable growth
In 2019, the company’s revenue rose 45% and grew by another 38% in the first few months of 2020.
Despite the pandemic that hit the global markets, this winner kept its leading positions and continued growing.
The exceptional growth rates — which are sustained by Snapchat’s popularity among users, together with the continuing expansion of its network with new videos and games – put Snapchat in a leading position and way ahead of rivals like Instagram, Facebook, and TikTok.
- High-quality and affordable stock
Right now, investors can buy Snap stocks for $50 a share.
Compared to Pinterest, another high-growth social network with over 40% sales growth, Snapchat seems to be a bit pricier.
However, both Snapchat and Pinterest remain high-quality and affordable stocks compared to other technology stocks. That makes them very attractive to investors who cannot afford to put a lot of money into stocks.
Snapchat could see some volatility during 2021. However, the company’s business style, along with the unshakable loyalty of its users — could push the stock to even higher levels over the next few years.