Snap Inc.’s (NYSE:SNAP) 29% Share Price Surge Not Quite Adding Up
Snap Inc. (NYSE:SNAP) shareholders have had their patience rewarded with a 29% share price jump in the last month. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 28% in the last twelve months.
Since its price has surged higher, when almost half of the companies in the United States’ Interactive Media and Services industry have price-to-sales ratios (or “P/S”) below 1.3x, you may consider Snap as a stock probably not worth researching with its 3.1x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
