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Snap Inc Stock Still Has A Lot To Prove

By U.S. News & World Report

Snap Inc (NYSE: SNAP) stock traded lower by more than 5.7 percent on Monday following a downgrade by Jefferies for the maker of the popular Snapchat app.

Analyst Brent Thrill says Snap stock is fully valued at the moment, and the company has a lot to prove to investors if it wants to gain long-term bullish momentum.

[See: 7 of the Best Tech Stocks to Buy for 2018.]

On Monday, Jefferies downgraded Snap from “buy” to “hold,” and Thrill says $15 is likely the upper end of Snap’s trading range for now.

“We continue to have optimism around Snap’s platform, but fundamental execution needs to be shown before we can be more positive on the name,” Thrill says.

Snap stock is now trading at around 11 times Jefferies 2018 revenue estimates, a price that Thrill says is appropriate given the company’s near-term risks as it rolls out a newly designed app.

“We’ve also spent some time with the updated Snapchat app and see the positives, but also some negatives behind the redesign which could lead to some turbulence in usage and adoption when rolled out,” he says.

Despite the uncertainty surrounding the app redesign, Jefferies estimates Snap will grow its user base by 15 percent this year and increase its average revenue per user by 44 percent.

Jefferies has gotten moderately positive feedback from advertisers about the new app, particularly when it comes to the “social” tab. In the long-term, Thrill says the redesign could help Snap expand its market share outside of the 13-to-34 age range.

[See: 10 Great Tech ETFs That Stay Under the Radar.]

In December, RBC Capital published its latest social media survey results, which painted a clear picture of Snapchat’s strengths and weaknesses. The platform was the most preferred social media network among teens aged 13 to 18. RBC found that 79 percent of teens currently have a Snapchat account compared to 73 percent who have an Instagram account and 57 percent who have a Facebook ( FB) account.

However, among social media users of all ages, 91 percent have a Facebook account compared to only 31 percent who have a Snapchat account. RBC analyst Mark Mahaney says Facebook and its Instagram platform are still the gold standard of social media.

“In terms of trends, Snapchat is clearly rising among the 13 to 18 cohort, but Instagram has had positive trends across every age cohort over the past three iterations,” Mahaney says.

Thrill says Jefferies prefers Facebook stock to Snap stock as well.

RBC has a “sector perform” rating and $15 price target for Snap. Jefferies has a $15 target as well.

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Snap Inc Stock Still Has A Lot To Prove originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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