NYSE:Snap: Snap Inc. Stock Price flattens amid coronavirus scare, ignoring firm's financials

Snap Inc. stocks are consolidating their gains after a busy week.
Optimism about Snap's finances has been supporting the price.
The instant messaging app's correlation with the broader market is growing.

Yohay Elam FXStreet

Snap's shares were once deemed a failure and compared to penny stocks. However, the company founded by Evan Spiegel has made a comeback last year, thanks to better finances.

The firm ramped up its sales and its revenues rose. With Facebook – which also owns Instagram and Whatsapp – under the regulatory spotlight, Snap's chatting app has made inroads into investors' portfolios.

Snap's top executives accused Facebook of copying its features to get ahead, but the opposite seems to be happening – on the business side. Snap's ad platform is a new source of revenue.

Snap Inc. stock price

Over the past month, NYSE:SNAP nearly reached the $20 level. It had traded below $16 on December 24 and those who held onto the stock seemed to receive a nice Christmas present.

In recent days, share values have become flatter, but its behavior seems correlated with listless markets. The coronavirus disease has been weighing on global equities amid fears that the world economy would suffer.

However, Snap is a technology company, and like its peers – it is vulenrable to a sell-off tech stocks that may occur in 2020. Valuations of several companies have ballooned, with a growing $1 trillion club. An implosion of the "tech bubble" due to regulation, investor fright, or any other phenomenon may weigh on the messaging company even if its financials are stable.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD clings to modest gains above 1.1550 post-US CPI

EUR/USD stays in positive territory above 1.1550 in the American session on Wednesday. The data from the US showed that the annual CPI inflation climbed to 4.2% in May. This print came in line with the market expectation and made it difficult for the USD to gather strength.

GBP/USD pulls away from session highs, stays above 1.3400

GBP/USD stays in positive territory slightly above 1.3400 despite pulling away from session highs. The cautious market stance helps the US Dollar limit its losses and cap the pair's upside as investors assess the US inflation data, which showed that the CPI rose 4.2% on a yearly basis in May.

Gold trades at fresh 10-week low below $4,200

Gold builds on Tuesday’s losses and remains under heavy pressure, gyrating around the $4,150 mark per troy ounce as investors evaluate the latest US CPI data on Wednesday. Meanwhile, developments from the Middle East crisis and the likelihood of a more cautious Fed in the next few months continue to weigh on the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP face downside pressure amid investor de-risking

Major crypto assets trade under intense headwinds on Wednesday, as market participants navigate complex geopolitical and macroeconomic environments.

The market gets a CPI core reprieve, but Oil still holds the match

The market just got a temporary get-out-of-jail-free card, not a full pardon, but enough to keep the Fed’s hand off the rate hike lever as the tape exhales, at least for now. Headline CPI landed exactly where feared, with prices rising 0.5% MoM and 4.2% YoY, the hottest annual inflation print in more than three years and a clear acceleration from 3.8% in April.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.