Snap is rallying for a 5th straight day (SNAP)
- Snap is in the midst of a five-day rally.
- Shares have gained more than 20% in that span.
- A research note from notorious short-seller Andrew Left sparked the mini run, according to several sources.
- Watch Snap trade in real time here.
Snap is jumping Tuesday, up 3.08% to $12.70 a share.
Shares have rallied more than 20% since the current five-day winning streak began on Wednesday. However, they have yet to make up the drop that occurred after the company missed badly on earnings in early May. Shares plunged more than 20% that day. In order to recoup their post-earnings loss they would need to reach $14.13.
But notorious short seller Andrew Left believes investors are overlooking Snap’s fundamentals. Snap is “one stabilizing quarter from giving investors a 30% or more return — more than you can see in any FANG stock in our opinion,” Left wrote in a Thursday note to clients.
“Although we now find out that SNAP has plans for profitability in the neat 12 months, we still question if it will remain independent for that long,” he added. “Google could easily give Snap the “grownup” it needs while also saving close to $100 million.”
And it was Left’s note that has sent shares higher over the last couple of sessions, according to multiple analysts. “A beat up stock with elevated short interest gets positive commentary from respected firm = stock moving off of lows,” USAA Senior Equity Analyst Jason.
And RBC Capital Markets Analyst Mark Mahaney told Business Insider, “A news flash about Citron tweeting positive comments” is likely one of the catalysts driving Snap’s pop. Other analysts confirmed those comments.
Snap is down 15.90% this year.
Read the full article from it’s original source: http://uk.businessinsider.com/snap-stock-price-rallying-for-5th-straight-day-2018-6