<center>https://mentormarket.io/wp-content/uploads/2019/03/snap.png</center> <br/><p>Ever since Snap announced their fourth quarter earnings no Feb. 5, the stock has been on a tear.&nbsp; During the earnings call, Snap posted a narrower-than –expected loss, communicated that the number of daily active users have stabilized and their Collection Ads, which enable a business to showcase four products in a single Snap, drove over twice the return on ad spend versus Q4 2018.</p>
<img src="https://mentormarket.io/wp-content/uploads/2019/03/image-287-1024x487.png" alt="" class="wp-image-11347" />
<p>Snap shares are now up more than 100% year to date and on Thurs received a vote of confidence when a once bearish analyst, BTIG’s Richard Greenfield, upgraded the stock from Buy from Neutral and set a $17 price target.</p>
<img src="https://mentormarket.io/wp-content/uploads/2019/03/image-281.png" alt="" class="wp-image-11340" />
<p>Back in September, Rich Greenfield had downgraded Snap shares to sell with a price target of $5, expressing concern that Snap's cash burn could require a capital raise by 2020.  Snap was also plagued by a redesign snafu which led to a decline in active daily users and saw top executive leave the company within the past year.  But today it’s a different tune.</p>
<img src="https://mentormarket.io/wp-content/uploads/2019/03/image-282.png" alt="" class="wp-image-11341" />
<p>The only reason I haven’t shorted Snap when it was declining in the past because I thought some company was going to fly in a swoop it.  However, with the valuation increasing again and what I believe is a dead business model due to Facebook/Instragram and the fact that it caters to only one generation, I think I will get another shot at shorting Snap due to the immediate observations:</p>
<p>Insiders Are Cashing In</p>
<center><img src="https://mentormarket.io/wp-content/uploads/2019/03/image-283-1024x764.png" alt="" class="wp-image-11342" />
<p style="text-align:center"><a href="https://www.reuters.com/finance/stocks/insider-trading/SNAP.N">Source</a></p>
<p>Less eyeballs, </p>
<center><img src="https://mentormarket.io/wp-content/uploads/2019/03/image-285.png" alt="" class="wp-image-11344" />
<p style="text-align:center"><a href="https://www.statista.com/chart/7951/snapchat-user-growth/">Source</a></p>
<p>will lead to less ad revenue, will lead to less operating income and cash flow,</p>
<center><img src="https://mentormarket.io/wp-content/uploads/2019/03/image-284-1024x496.png" alt="" class="wp-image-11343" />
<p style="text-align:center"><a href="https://finance.yahoo.com/quote/SNAP/cash-flow?p=SNAP">Source</a></p>
<p> will lead to less earnings, eventually leading to a lower stock price. </p>
<p>The chart suggests to buy on a pull back to the weekly demand at $9 and short at the daily supply at $17.50. </p>
<img src="https://mentormarket.io/wp-content/uploads/2019/03/image-288-1024x487.png" alt="" class="wp-image-11350" />
<p>This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.</p>
 <center>https://steemitimages.com/DQmRhDtjokAZnGKi4QwheqksKTFo6m4fsjMYsNNrsitC1xk/upvote%20banner3.gif</center> 

<hr />
<center><em>Published by <a href="https://mentormarket.io/profile/?rollandthomas/">Rolland Thomas</a>
</em></p>
<center><em> on
</em>

<center><a href="https://mentormarket.io"><img class="size-full wp-image-2374 aligncenter" src="https://mentormarket.io/mentor/wp-content/uploads/sites/2/2018/11/150-blue-Overlay-6.png" alt="" width="150" height="40" /></a></center><center><em>with <a href="https://wordpress.org/plugins/steempress/">SteemPress</a></em></center><center><em>https://mentormarket.io/stocks/rollandthomas/snap-keeps-snapping-higher/ </em></center>

<hr />
<p style="text-align: center;"><a href="https://mentormarket.io/about/terms-of-service/"><img class="alignnone size-full wp-image-2373" src="https://mentormarket.io/mentor/wp-content/uploads/sites/2/2018/11/Disclaimer.png" alt="" width="750" height="125" /></a></p>