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Snap, Spotify & Twitter Earnings Previews: Buy These Consumer Tech Stocks?

Benjamin Rains


On today’s episode of Full Court Finance here at Zacks, we preview what investors can expect from Snap Inc. SNAP, Spotify SPOT, and Twitter’s TWTR upcoming fourth quarter financial results. The three consumer-focused tech stocks have all faced various problems as public firms, but look poised to grow their user bases.

All three major U.S. indexes jumped Monday morning to help them bounce back from a rough week. Coronavirus worries are likely to continue to hover over global markets until there is more clarity regarding its spread and potential impact on economic expansion.

Despite coronavirus fears, the U.S. economic picture appears solid. Apple AAPL, Microsoft MSFT, Amazon AMZN, Tesla TSLA, and other giants all posted blowout earnings in the last week of January alone, and corporate earnings growth is projected to return in 2020.

On top of that, the Fed maintained low interest rates, U.S. unemployment remains near 50-year lows, and the U.S. economy is expected to expand by at least 2% in 2020 (also read: Should You Buy the Dip?).

The better-than-expected Q4 earnings season could put more pressure on the three stocks we break down today.

Shares of Snapchat parent company Snap have soared over the last year on strong advertising growth. The social media company, which focuses on disappearing photos and videos, has expanded its business and continues to add users despite Facebook’s FB ability to mimic some of its features.

Spotify has continued to grow its paid Premium Subscribers base as it spends to bolster its podcast business. SPOT is a streaming music powerhouse, but it must prove to Wall Street that it can stand out from its peers such as Apple Music.

Lastly, Twitter has proven to be a hard stock to figure out. The social media company remains vital to news outlets, companies, and anyone else who wants to share information quickly and directly. However, TWTR stock has failed to impress Wall Street and some might have hoped that its video streaming business would bigger at this point in the Netflix NFLX era.  

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Netflix, Inc. (NFLX) : Free Stock Analysis Report, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Spotify Technology SA (SPOT) : Free Stock Analysis Report
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