Snap, Inc. (NYSE:SNAP) shares climbed on heavy trading volume Monday, pushing the stock to gains of 14% over the past five days.
Buyout rumors have resurfaced along with uncertainty around the TikTok deal and increased social media chatter.
- SNAP stock is trading on heavy volume. See the price-action here.
SNAP Trending
Snap was trending on several social media platforms, including Stocktwits and X with lots of speculation, but very little solid information.
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Last Friday, X user Heisenberg noted that trading volume has been steadily increasing and predicted that something big is coming.
"Highest weekly volume ever. Highest monthly volume ever (and the month is not even done). Last two days were the two highest daily volumes since Oct 2022. Right before a near 50% unabated pamp.
Something is brewing here…. BUY," Heisenberg wrote.
Spectacles And Snap OS 2.0
Some traders are highlighting Snap’s push toward new AR Spectacles and Snap OS 2.0 and see the innovations as a step toward capturing the emerging AR market.
Snap describes its upcoming Specs as wearable computers pairing lightweight glasses with see-through lenses, real-time AI translation and interactive gaming.
Snap OS 2.0 aims to deliver an intuitive interface, expanded browser capabilities and immersive AR lenses that support creativity and context-sensitive content.
Buyout Rumors Are Back
Several tech giants are rumored to be interested in acquiring Snap. The most frequently mentioned companies include Google, Amazon and Apple, with historical references to Meta‘s failed $6 billion bid in 2013.
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TikTok?
The elusive TikTok deal is adding fuel to Snap's fire.
The market views TikTok's potential divestiture as a double-edged sword for Snap. The company could gain users and advertising dollars if TikTok faces new restrictions or operational changes, but risks losing ground if TikTok's sale results in deeper-pocketed competitors entering the space.
Short Squeeze
One Stocktwits user highlighted Snap's high short interest, which data from Benzinga Pro pegs at 13.3% of outstanding shares.
"Oh snap just saw we have 16% caught short! Rip bears…cover while you can..ticky tocky is setting the price!" user Keep Buying wrote in a post.
The Takeaway
The surge in trading activity and Snap's stock price appears to be driven by several factors, including hype around the TikTok deal, buyout rumors, optimism about the next-generation Spectacles and meme-like momentum in the stock.
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Photo: Shutterstock
