5 Reddit Stocks That Are Too Cheap To Ignore

1. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 42

Share Price as of November 22: $9.96

Snap Inc. (NYSE:SNAP) is a communication services company operating in North America, Europe, and internationally. It offers Snapchat, a camera application with a range of features such as Snap Map, Stories, and Spotlight, enabling users to communicate visually through short videos and images.

UBS analyst Lloyd Walmsley holds a Buy rating on Snap Inc. (NYSE:SNAP) shares as of October 21.

Snap Inc. (NYSE:SNAP) is a communications stock that has shown growth potential in 2022. In the third quarter, the company’s daily active users jumped by 19% year-over-year. Its users are what enable the company to bring in revenue through advertisements and subscriptions, making this growth noteworthy especially given that many social media applications have been suffering in 2022 from slow user growth.

Snap Inc. (NYSE:SNAP) was found among the 13F holdings of 42 hedge funds in the third quarter, with a total stake value of $825.7 million.

RiverPark Funds, an investment management company, mentioned Snap Inc. (NYSE:SNAP) in its third-quarter 2022 investor letter. Here’s what the firm said:

“SNAP shares were our top detractor for the quarter on its July decline from weaker revenue growth relative to guidance (which had been reduced in May) and the fact that management did not provide an outlook for 3Q. Shares subsequently rebounded somewhat as the company announced better-than-expected near-term revenue growth, while announcing a broadbased cost restructuring.

Although the company continues to face near-term macro headwinds and difficult year-over-year comparisons from COVID-fueled quarters last year, we believe SNAP can reaccelerate its revenue growth to greater than 20% annually over the next several years. With TTM revenue of $4.5 billion (as compared with Meta’s $120 billion), 347 million daily average users (about 1/10 of Meta’s), and $14 TTM ARPU (about 1/3 of Meta’s), we believe SNAP has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, continues to grow its audience (daily active users continue to grow at a double-digit rate), and expands its monetization.”

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