While Big Tech earnings are the talk of the town today, social media company Snap Inc (NYSE:SNAP) stole the show, posting first-quarter earnings and revenue that topped analysts' expectations, with the latter rising to $1.19 billion thanks to the firm's improved advertising platform. At last glance, SNAP is up 24.5% to trade at $14.20.
Snap stock is on track for its best single-session gain since February 2022, and has now cleared recent congestion below $12.50. Still, the shares are down 15.1% in 2024, still smarting from the Feb. 7 post-earnings drawdown of 34.6%.
No less than 16 price-target hikes rolled in after the results. Most moved between $14-$18, though Jefferies adjusted all the way up to $19 -- a 66.7% premium to Thursday's close. A round of upgrades could be overdue, considering 24 of 33 covering brokerages rate Snap stock a "hold" or worse. A short squeeze is in play as well, with a healthy 7.9% of SNAP's total available float sold short.
Options traders are teeing off today, with 137,000 contracts changing hands already, volume that's 10 times the average intraday amount. The weekly 4/26 14 put is the most popular, with new positions being opened, followed by the 16 call in the same series.
Coming into today, options traders were overwhelmingly bullish. SNAP's 50-day call/put volume ratio of 4.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits seven percentage points from an annual high, implying a healthier-than usual appetite for long calls of late.
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