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Snap Q4 Results Driven by Average Revenue Per User Growth, Wedbush Says

· 02/05/2021 06:43

11:29 AM EST, 02/05/2021 (MT Newswires) -- Snap (SNAP) handily beat Q4 expectations thanks to factors including strong advertising trends and growth in average revenue per user, Wedbush said in a note.

Even with the 22% growth in worldwide average revenue per user, Snap has the most room to grow when compared with social media heavyweights including Facebook (FB) and Twitter (TWTR).

Snap has the potential to drive a higher return on investment for advertisers because its user base is mostly made up of young people, and the company's recent adjusted EBITDA guidance suggests that it will sacrifice profitability in favor of user retention, Wedbush said.

The brokerage reiterated its neutral rating and increased the price target to $52 from $34.50.

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