Snap jumped on Tuesday after an analyst at Guggenheim upgraded the stock to buy from neutral, setting a $22 price target.
Snap (NYSE:SNAP) stock gained 2% to trade at $17.45 in midday trading.
Michael Morris said in a note to clients that he was positive about usage trends for the third quarter and sees users moving towards monetized areas like games.
"We continue to see under-appreciated core fundamental momentum at the company, particularly with difficult-to-reach younger users in the U.S. and expansion potential outside the United States," he wrote.
