In December, Snap Inc. (SNAP) began trading with a 200-day moving average. Since going public in May, the stock has been consistently under pressure, trading around $14 per share at Tuesday's close.
However, after reporting earnings Tuesday evening, Snap stock is rocketing higher and now trading above that 200-day moving average Wednesday. While the 200-day is set near $16, Snap stock opened near $17 -- its IPO price -- before quickly surging over $18.50, up almost 33% on the day.
The company had struggled to beat analysts' expectations in its first few quarters as a public company. That is, until its fiscal-fourth quarter results, where it topped earnings per share, revenue and user growth expectations.
Here's what Wall Street think:
Bank of America/Merrill Lynch analyst Justin Post upgraded Snap stock to buy from hold and raised his price target to $24 from $16. The company has "turned the corner on monetization," he said, adding that this quarter appears to be an inflection point in the stock.
Post is not alone. Barclays' Ross Sandler ratcheted up his price target to $21 from $18, while RBC's Mark Mahaney upped his price target to $21 from $15, also calling it an "sustainable inflection-point quarter." Oppenheimer analysts bumped their target to $19 from $14.
Although some have become bullish, not everyone is a buyer of Snap. Or at least, not all are convinced of the turnaround.
Morgan Stanley's Brian Nowak acknowledged that Snap's fourth-quarter results were better-than-expected, but questions the "durability of the momentum into 2018." He bumped his revenue estimates by 3% for 2018 and 2019, and only raised his price target to $11 from $10. Nowak also maintains his underweight rating.
Canaccord analysts said fourth-quarter results were good, but 2018 needs to sustain momentum. They maintain a hold rating, but boost their price target to $16 from $12.
JPMorgan analysts upgraded the stock to neutral from underweight and raised their price target to $16 from $10. SunTrust upgraded the stock to hold from sell and raised their price target to $15 from $10, while Stifel upped their price target to $17 from $13.
The surge in Snap couldn't be stopped, with shares rallying an incredible 47.63% to $20.75 in the session.