During the coronavirus pandemic, more people at home and choose online entertainment software to offset boring life, which benefitting Snap (SNAP). The company's stock rose by 212% in 2020. Although the company is not yet profitable, its market value is as much as $92 billion now! So, should investors buy this stock at this time?
The company achieved its revenue an increase of 66% to $770 million in Q1 2021, compared to the prior year, and its daily active users were 280 million in Q1 2021, an increase of 22% year-over-year. The company said it began 2021 by achieving its highest year-over-year revenue and daily active user growth rates in over three years during the quarter. However, it reported a net loss of $287 million during the quarter, still unprofitable.
The company gave its forecast for Q2 2021, and expected that the revenue is estimated to be between $820 million and $840 million, which represents an increase of over 80% year-over-year growth. However, investors need to pay attention that as the coronavirus pandemic is alleviated and restrictions lifted at low-risk areas, people may cut their time spending on entertainment software.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.