Snapchat (SNAP) is an inconsistent performer. It would rally occasionally after an earnings report or plunge on a weak outlook.
Snap posted Q3 revenue guidance in the range of $1.335 billion to $1.375 billion. Analysts expected Snap to report $1.36 billion in revenue. The firm said that it is investing incrementally in infrastructure, personnel, and marketing. However, legal and regulatory burdens add to its cost structure. That comment suggests that markets should treat Snap as a utility stock in the tech sector. It will need to trade at sharply lower price-to-sales multiples.
Doordash (DASH) will rise by at least 10% after posting a Q2 EPS loss of $0.38. The firm generated revenue of $2.63 billion, up by 23.5% Y/Y. In Q3, it expects marketplace GOV of up to $19.8 billion and adjusted EBITDA of up to $540 million.
In the tech sector, watch Twilio (TWLO). The firm posted revenue growing by 3.8% Y/Y to $1.08 billion. It achieved over 316,000 active customer accounts.
TWLO is a bargain stock at these levels.
Cloudflare (NET) will break out of its downtrend after posting a 30.0% Y/Y growth in revenue, to $401 million. The backbone of the internet demonstrated meaningful margin expansion trends. Most importantly, Cloudflare expects an EPS of $0.18 and revenue of $423 million – $424 million. Both estimates are above the consensus.