For Immediate Release
Chicago, IL –March 13, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Facebook (NASDAQ: FB – Free Report ), Twitter ( NYSE: TWTR – Free Report ) , First Trust US IPO Index ( NYSEARCA: FPX – Free Report ) and Renaissance IPO ETF ( NYSEARCA: IPO – Free Report ) .
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Here are highlights from Friday’s Analyst Blog:
Should You Invest in Snap via IPOs?
Snap , the parent of Snapchat, made its public debut last week. It was the biggest IPO since Alibaba’s in 2014. The shares opened at $24 after listing at $17 and surged on the first two days and lost all those gains in the next two days. Trading in shares has been very heavy and volatile.
While it was a hot IPO, many have been concerned about the valuation. At current share price, the company has a market cap of $26 billion. They had reported net revenue of $404 million and a loss of $515 million for 2016. No analyst has assigned a “Buy” rating to the stock.
Snap has 158 million average active daily users who send more than 2.5 billion messages every day. Instagram, which is owned byFacebook (NASDAQ: FB – Free Report ), reported 300 million daily active users and their user growth is outpacing Snap’s. And, Instagram Stories is pretty similar to Snapchat.
Investors should remember that not all IPOs are successful. Investing in smaller, rather unknown companies can be quite risky. A handful of these newly minted companies may turn out to be excellent investments; some may result in big losses.
It remains to be seen whether Snap will grow likeFacebook or sputter like Twitter (NYSE: TWTR – Free Report ). Facebook had an IPO price of $38 per share and is currently trading above $138. Twitter IPO’d at $26 per share and now trades at $15.
Using an ETF approach is a low-risk and convenient way of getting exposure to this ‘hot” corner of the investing world. To learn more about theFirst Trust US IPO Index (NYSEARCA: FPX – Free Report ) and Renaissance IPO ETF ( NYSEARCA: IPO – Free Report ) , please watch the short video above. FPX has already added Snap and IPO is expected to add it soon.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Facebook, Inc. (FB): Free Stock Analysis Report
Twitter, Inc. (TWTR): Free Stock Analysis Report
FT-IPOX 100 (FPX): ETF Research Reports
RENAIS-IPO ETF (IPO): ETF Research Reports
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