Some investors on Wall Street might think that Snap Inc (NYSE:SNAP) stock has run its course. But with short-sellers’ interest dwindling and focused elsewhere, a technical “lift” will inevitably drive shares higher, which makes now a good time to hop on to the bullish train for SNAP stock.
A month ago, SNAP stock surprised Wall Street by delivering stronger-than-forecast engagement numbers from its bread-and-butter younger demographic bases, as well as many other across-the-board goodies. And with Snap’s management quick to tell Wall Street it is “substantially closer to profitability”, investors did more than simply spook SNAP stock’s bearish population.
It has been a very good month since SNAP stock reported earnings. As most market watchers are aware, the report throttled shares higher by 22% in the immediate aftermath. And that’s great for investors that were already in it, to win it … well, almost everybody.
More importantly for the longer-term prospects and today’s buyers of SNAP stock, last month’s results have had the impact of shedding Snap’s short interest by more than 30% to a reasonable 7% of the float. That’s good news, but that’s not the end of the story either.
Over the period Snap shares have also put together a fully formed uptrend. And with SNAP stock now at a critical intersection of converging resistance lines, it’s anticipated a breakout is at hand as other bullish trend traders step up to the plate and the last few bears throw in the towel.