Broadly speaking, social media stocks usually trade at premiums to broader equity benchmarks. For example, SOCL’s 2018 price-to-earnings ratio of almost 27 is well above that of the S&P 500.
“Finally, SNAP’s price target was lowered to $6.25 from $8, and its rating stayed at a ‘hold.’ Canaccord Genuity’s wrote that “consensus is too optimistic regarding margin expansion.” The Snapchat parent’s shares are down 0.4% at $5.79 today, extending their dramatic downtrend that started back in February when they were trading around $20. The stock traded as low as $4.82 back on Dec. 21,” according to Schaeffer’s.
SNAP is a top 20 holding in SOCL.
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