Shares of instant-picture social media platform Snap (SNAP) - Get Snap, Inc. Class A Report snapped back on Friday, recovering some of Thursday's losses, after receiving an upgrade from analysts at Morgan Stanley, who feel the company's improved advertising options will lead to stronger revenue momentum.
Shares of Snap were up 3.64% at $14.82 in morning trading on the New York Stock Exchange on Friday after Morgan Stanley analyst Brian Nowak upgraded his rating on the company to equal weight from underweight, and raised his price target on the stock to $17 from $14.
"At a high level, year-to-date we have underestimated SNAP's stronger top and bottom-line execution and ability to drive growth and upward revisions," Morgan Stanley's Nowak wrote in a note to clients, adding he sees "room for higher monetization" in terms of ad revenue per user.
The upgrade -- and the accompanying share rebound -- follows a near 5% drop for SNAP on Thursday in the wake of Facebook's (FB) - Get Meta Platforms Inc. Class A Report announcement that it was rolling out an update to its popular Instagram service that has similar features and capabilities as Snap's.
Shares of Facebook were little changed at $179.43 in morning trading after ending the trading day Thursday up 2.74%.
Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!