Snap Gains for Fourth Session as Hopes Grow for Turnaround

(Bloomberg) -- Snap Inc. shares rose for a fourth straight session on Thursday, extending a recent advance that has been fueled on growing optimism over a turnaround at the social-networking company.

The stock rose as much as 4.4%, though it pared some of that advance and last traded up 2.6% on the day. Shares have gained about 8% over the four-day climb, and they’re up nearly 20% off a low from earlier this month.

Thus far in May, Snap is up 7.3%, compared with a 5.5% decline in the S&P 500 over the same period.

In a note published on Wednesday, Pivotal Research Group wrote that it was “highly encouraged by progress” at Snap over the last several quarters. “Execution is all moving in the right direction” and “there is a scenario that we are being too conservative on revenue growth.”

Analyst Michael Levine has a hold rating on the stock; he pointed to recent gains in the stock -- it is up 140% from a December low -- as one of the reasons he wasn’t more bullish.

There have been a number of catalysts behind Snap’s 2019 gains, including new product announcements, progress on its Android redesign and signs of stabilizing user trends. Earlier this month, BTIG analyst Rich Greenfield told Bloomberg News that Snap’s app “has surged in the U.S. iOs store and is climbing in Android in many parts of the world.”

To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jennifer Bissell-Linsk, Will Daley

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