So what Stock reported earnings and dropped 34% What's going on guys? It's Ricky with Techbit Solutions Let's go ahead and talk about Snapchat So Snapchat has been actually not performing the worst in comparison to previous years when it went from lows of $828 all the way to highs of around. really. Where it found a resistance was right around $17 it Consolidated there. Uh, pretty much since December of 2023 and we've been seeing a lot of consolidation.

A lot of people love to ask is what is a sign of a resistance level Feel like This is a perfect example. It's just the general range where the stock itself struggles to hold above anytime that it gets. At a certain point, it sees and experiences a resistance. Again, more selling pressure than buying pressure.

So it continues to pull back, continues to pull back, continues to pull back It reported earnings and boom went from highs of $17 to an unfortunate drop of $11 a share. Now let me make this very clear: just because it sold off 34% doesn't mean that the cheap can't get cheaper and this is something that you'll see happen pretty often. People like to just all of a sudden buy the dip thinking that it has to recover. That is not the case Snapchat Can 100% get worse before it gets better? But I wanted to talk about it because it being down 34% is something to talk about because if it does begin to recover, I'm not saying that it will, but if it does from current price points, based off of previous resistance around 1750, it offers over a 55% Roi Is that not something worth talking about? But first, let's quickly talk about why it sold off.

So it reported earnings and missed. Um, also a big Focus Well, let me just read this article for you from Uh Yahoo Finance it says uh shares of Snapchat Incorporated are dropping over 30% in extended hours trading Tuesday afternoon after the company released its fourth quarter earning report. So the report shows Revenue Rose by 5% to 1.36 billion, but missed its earning. Uh, its estimate of 1.38 billion.

Yes, just by a 002 billion Miss We saw a significant drop. but there's more to it, right? The really big reason when they asked an analyst on why we were seeing so much selling pressure is what I would say is that there was really one thing and only one thing that historically this company more than any other has focused on brand advertising versus performance advertisement. It was one of the reasons why they were, uh, why they had really hard issues early on Postco. So this was something that Snapchat has previously experienced and being able to monetize their platform and what their main focus on due to their guidance and what they reported.

their focus has now changed and that's essentially what they are saying that pretty much the past year they have been been rebuilding their advertising technology and solutions to enable them to more effectively sell that kind of performance eCommerce advertisement. So what it looks like is just again. it looks like Snapchat just doesn't have it all figured out that they're still trying to figure it out. and with a market cap valuation of previously of over $30 billion, now it's trading at an $18 billion market cap.

It was actually quite exciting because Snapchat used to be a great perform stock and then kind of just like everything. Shortly after 2021, we saw a really aggressive selloff. Imagine that from $80 a share all the way to lows of seven we flatlined for nearly a year. You guys could see that it pretty much just traded sideways and then all of a sudden late 2023, this thing went from lows of $8 and began to indicate signs of some uptrend doubled in price8 to around 16.

maybe $17 That's great, but again, just like expected. It goes back to its previous Direction and sells back off. The reason I'm talking about this is because it had a significant drop. I Don't expect this thing to recover overnight as this thing has more of a previous performance of selling off than it does to recover.

I Just like covering stocks that have dramatic moves and for you to be able to make a trade decision that meets your criteria. Now, if it were me, what would I be looking for? Uh, well, with an Lpp, we talk about the three stages of a reverse. Right when something is actively selling off, there's no reason to try to buy the dip because the cheap can always get cheaper. It's a concept that you will learn very quickly in the stock market if you try buying the dip before it actually begins to recover.

So what I would like to wait for here is for signs of consolidation and establishment of support meaning that it's no longer making new lows and then for it to actually trade above the EMA and simply the price action indicating signs of a recovery I Want to feel like I am missing out by not being invested in Snapchat There is so much recovery potential that I shouldn't need to nickel and Diamond opportunity. If Snapchat is so certain to recover, then I would want to wait for that criteria to be met. so it could be that okay. Maybe I'll wait for the break above $12 $1250 Whatever the case might be indicating signs of an uptrend that it's showing signs of growth and at that point I can revisit the idea of okay.

Do I want to size into this? You know, stuck. Do I want a dollar cost average into it? Maybe I'll start off light and see if it continues to indicate signs of an uptrend. And the more right? Let's go ahead and go back to when it was an active uptrend. the more that it continues to indicate signs of a consistent uptrend, the more I would love to add to it when direction is favorable.

This is the best example that I can give you is that when a stock is actually showing signs of growth, it can be trading above the EMA and the moving average showing signs of consistent growth. Right now, we're doing quite the opposite. Right now, it's selling off, it can continue to get cheaper and again, why are you in a rush to overpay? Why buy it at $1 when next week it could be at 10 or at 9 or back at 8, right? The cheap can always get cheaper and please. You will learn this in the stock market one way or another, either from this video or from your own experience.

And if you don't want to take my word for it, feel free to ask anyone in the comment section. Buying the dip or trying to predict the bottom of a stock of a potential reversal um is a very dangerous thing, especially when you're just getting started and you don't properly know how to manage risk. So I like the setup here I just want to wait for indication of an uptrend indication of a reversal. The three stages of reversal that we talk about in Lpp and then I would feel more confident to dollar cost average into that potential reversal.

The other thing that I quickly also want to talk about, let me see if I can go ahead and pull it up. it looks like I actually removed. uh, the page Uh, but we have Spirit Airlines which is save. This is in my radar for tomorrow.

Spirit Airlines After it was blocked by the US the merge the merger from Jet Blue This is why we saw a huge drop from highs of $15 to lows of $3.99 It was a merger that was going to happen with Jet Blue The US said no way, this is too big. they blocked it Spear Airlines Aggressively sold off I'm going to see how the market reacts after they report earnings tomorrow because this might determine if this company is going to have to file for bankruptcy or not. They are in the in the Brinks of of filing for bankruptcy and that's all everyone is talking about when it comes down to Spirit Airlines And tomorrow they report earnings and it's one of my main things in my watch list to see. Are we going to see this thing begin to pull on back or actually begin to indicate signs of recovery? It's going to be quite exciting to see at least the eventful.

It's not something that I necessarily intend to trade. Uh, but I Just love catching the Market's reaction to these reports when a company like this is already struggling. So again, I would love for you to be able to, uh, see me kind of react to this during tomorrow's live trading session. and if you want to tune on in, it's going to be the second link in the description down below and you guys let me know about: Snapchat Is it something that you would consider buying? Is it something that doesn't meet your criteria at all? Or it's something that you are adding to your watch list and maybe buy at a later time when it actually begins to indicate signs of reversal? So I hope that ear your thumbs up.

please consider subscribing and again, if you have any questions, feel free to comment down below and I would love to answer for you. If you have any questions that you want to keep privately, feel free to send me a direct message via Discord or via Instagram And that's the first or third link in the description down below. Like always, let's make sure that we end the year on a green note. Take Care Team.

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