What's Going On With Snap Stock Monday?

Snap Inc SNAP shares are trading slightly lower Monday after the company announced a private offering.

What Happened: Before the market open on Monday, Snap announced that it intends to offer $700 million of senior notes due 2033 in a private offering.

Snap expects to use the net proceeds to repurchase some of its outstanding convertible senior notes due 2025, due 2026, due 2027 and due 2028. Any remaining proceeds will be used for general corporate purposes.

The offering comes after Snap shares surged last week on strong results for the fourth quarter. The company beat analyst estimates on the top and bottom lines as daily active users increased 9% on a year-over-year basis. Snap also said it expects first-quarter revenue to be in the range of $1.325 billion to $1.36 billion

“As we look ahead to 2025, we see additional opportunities to invest productively in scaling our business given the foundational improvements we have made to our ad platform and the momentum we have established in our go to market initiatives,” the company said in a letter to shareholders.

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Is SNAP A Good Stock To Buy?

Wall Street analysts view Snap on the whole as a Neutral, given the history of coverage over the past three months. Ken Gawrelski from Wells Fargo in Snap is the most bearish, expecting a 26.67% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, Snap fell 3.19%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 14.4% over the past year.

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SNAP Price Action: Snap shares were down 0.73% at $10.84 at the time of publication Monday, according to Benzinga Pro.

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