Ah, Snap! Here’s What Snap Inc.’s Action is Likely Signaling
“Air-pocket declines … are harbingers”
by Bob Stokes
Updated: July 07, 2022
Snap Inc. is the company which developed Snapchat, the social media app which allows users to customize the content they share with others – right in the app.
Recently, the firm introduced Snapchat+ -- available for $3.99 a month.
Snap could use some success -- it's been a tough go lately.
Our June Global Market Perspective showed this chart and said:
Technology routs are becoming more contagious. On [May 24], when Snap Inc. announced that it will slow hiring as it braces "to miss earnings and revenue targets," its shares declined more than 44%, and other social media giants quickly followed.... The air-pocket declines in various indexes and stocks matter, a lot. They are harbingers.
On May 27, the day the June Global Market Perspective published, Snap's stock price was trading at $15.58.
As of this intraday writing on July 6, the price is even lower -- $14.18.
Despite the big price drops in well-known technology names, you might be surprised to learn that many professional market observers are still bullish.
Indeed, here's a June 22 Yahoo! Finance headline:
Analysts remain 'unusually bullish' about S&P 500 stocks despite downturn
In Elliott Wave International's view, the combination of the downtrend in U.S. stocks with a highly bullish sentiment is nothing less than a major warning sign.'
But what about stocks in other parts of the world?
Our Global Market Perspective has you covered, whether you are interested in the U.S., the Asian-Pacific, Europe or other parts of the globe.
For example, our just-published July Global Market Perspective says:
The FTSE's long-term waves have... frustrated the bulls and bears alike. At its June 17 intraday low of 6998, Britain's benchmark index stood just 47 points above its intraday peak on December 30, 1999. In other words, an entire generation of investors underwent an agonizing 22 years of ups and downs and now has less than a single percentage point of capital gains to show for it.
That comment is accompanied by a chart which shows the Elliott wave structure of the FTSE, and hence, what you can expect next.
Our new, July Global Market Perspective leaves few stones unturned -- you get snapshot forecasts for more than 50 of the biggest markets. Get that analysis and many more insights into global stocks as you follow the link below.
Get Forecasts for Cryptocurrencies, Crude and Commodities
Yes, our Global Market Perspective covers all three... and much more.
For instance: After Bitcoin's huge decline, many investors are wondering what's next for the cryptocurrency. You'll find our analysis in the "Cryptocurrency" section of the recently published July Global Market Perspective. Ethereum, Litecoin and Solana are also covered.
All in all, our professional-grade Global Market Perspective provides Elliott wave-based forecasts for 50-plus worldwide financial markets.
It takes about 50-pages to get the job done properly so set aside a block of time to "dig in."
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"Things will change over the course of the next few years," says our Financial Forecast co-editor Pete Kendall in this new interview. Hear it for yourself.
September saw tech giant Microsoft Corp. in freefall, a rout ending September 30 at the stock's lowest level since March 2021. Oddly enough, the decline occurred amidst "fantastic" figures of growth and productivity. If you can answer the question, "Why did prices fall despite bullish 'fundamentals?'" you've got the job!
The Asian-Pacific stock markets have been showing a clear correlation with the trend in the U.S. dollar. Watch our Asian-Pacific Short Term Update editor Chris Carolan explain why right now, it's a "very dangerous" moment for the regional stocks.