Why Snap stock has nearly doubled since the beginning of 2019

on Apr5
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Evan Spiegel, co-founder and chief executive officer of Snapchat.

David Paul Morris | Bloomberg | Getty Images

Evan Spiegel, co-founder and chief executive officer of Snapchat.

Snap has made a major comeback so far in 2019, nearly doubling its stock price from $5.79 on the first trading day of the year to $11.28 as of Thursday’s market close.

Snap’s market value is now nearly $15 billion, compared to just over $7 billion at the beginning of 2019. Over the past six months, the stock has rallied 45 percent after falling as low as $4.82 in the past year.

Snap’s stabilizing user base and better than expected earnings report in its fourth quarter 2018 seems to have raised investor confidence in the stock. Investors are still eagerly awaiting the new version of Snap’s Android app to be fully rolled out, but analysts seem to be more confident in its arrival and ability to grow its user base.

Snap still has a lot to prove to investors to show the worst is behind it. The company is still down about 23 percent over the past 12 months and has experienced high turnover among its top executives. It posted a loss in its latest earnings report, even though it was lower than Wall Street expectations.

Here are some of the reasons analysts have given over the past few months when upgrading their price targets or ratings on Snap:



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