Even with Snap (NYSE:SNAP) shares recently hitting new highs, the growth stock arguably remains an attractive investment -- particularly for investors willing to hold shares for the long haul.
With nearly a $120 billion market capitalization at the time of this writing, it may be tempting for investors to conclude that the Snapchat parent company's $3.3 billion in trailing 12-month revenue couldn't possibly justify such a frothy valuation. Furthermore, the case against the stock looks even stronger when investors realize that Snap still isn't profitable.
But there are some good reasons this growth story is arguably worth paying up for.
Growth where it counts
The first reason Snap's premium valuation is easily justified is the social network specialist's staggering growth trajectory.
Second-quarter revenue, for instance, grew 116% year over year to $982 million. Yes, this growth rate was aided by an easy year-ago comparison, when revenue rose just 17% year over year as advertisers reduced or even paused ad spend amid an uncertain economic environment and lockdowns. But here's something to mull over: Management guided for third-quarter revenue to grow 58% to 60% despite going up against a tough comparison of 52% revenue growth in the third quarter of 2020.
But it's not just Snap's top-line momentum telling the company's growth story. The social network is also seeing impressive user growth that handily exceeds Facebook's (NASDAQ:FB) and Twitter's (NYSE:TWTR). Snap's daily...
Read Full Story: https://www.fool.com/investing/2021/08/03/1-growth-stock-to-buy-and-hold-for-the-next-decade/
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