Snap Shares Rallied Today and This is Why

Snap Shares

Most people are aware that Snap, Inc. (NYSE:$SNAP) has been struggling as of late, and on Thursday, we will see the extent of that struggle after the Venice, California-based company posts quarterly results. However, as one analyst has said, things are “getting interesting” for the beaten-down stock.

On Wednesday, shares of Snap rallied as options traders prepare for the quarter results. After the closing bell, shares of the social media company closed up 4.15% at $13.56. Even though this is still well below the $17 IPO offering price, it is still welcome news for investors.

Based on recent options transactions, it seems traders are forecasting a 15% one-day swing for the Snap stock in either direction after the quarterly results are posted.

Meanwhile, FBN Securities analyst Shebly Seyrafi cut his price target for Snap’s stock today from $21 to $17. He wrote that at current levels Snap is “getting interesting” and could potentially become an acquisition target for Facebook, Inc. (NASDAQ:$FB).

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About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.