Snap Inc. SNAP stock is one of countless covid standouts that’s seen a large chunk of its pandemic gains disappear. Snap really started to tumble after its Q3 earnings release in October when the company warned Wall Street that Apple’s privacy changes were negatively impacting business.

The worries are legitimate and impact many other mobile app-focused businesses. That said, should investors start to think about possibly buying Snap stock with its Q4 fiscal 2021 financial results due out on Thursday, February 3?

Snap Stumbles

Snap shares plummeted roughly 20% in a day following its Q3 earnings release in October. The drop hinged mostly on changes to Apple’s AAPL privacy policies that have made it far more difficult for its advertisers to “measure and manage their ad campaigns for iOS.”

Snapchat, which is fueled by digital ads, is working on various efforts to help its clients track consumer engagement and other crucial metrics in the face of Apple’s opt-in features. At the same time, some analysts are worried about increasing competition from TikTok, especially with Snap’s younger user base.

SNAP shares are down roughly 55% since its last earnings release, 60% from its September records, and 30% in 2022. The fall sent Snap stock to levels last seen in October 2020—prior to a huge surge. Luckily, some investors have started to buy up some beaten-down growth stocks over the last several sessions, including Snap.

Snap is up roughly 15% off Friday’s lows and closed regular trading Monday at $32.54 per share. The recent run has lifted it out of over oversold RSI levels (30 or under) of 15 to 34.

Plus, its Zacks consensus price target represents 120% upside to its current levels. The drop has also recalibrated its valuation picture. And even with all of the headwinds and the selling, Wall Street remains largely high on Snap, with 14 of the 21 brokerage recommendations Zacks has at “Strong Buys” and nothing below a “Hold.”

Image Source: Zacks Investment Research

Other Fundamentals

Snap grew its daily active users by 23% to 306 million in the third quarter. On top of that, it claims to reach “more than 500 million people, including more than 75% of 13- to 34-year-olds in the United States, Canada, France, the U.K., Australia and the Netherlands.” Snap has attracted these highly sought-after consumers by continually evolving its social media app that became famous for disappearing photos and videos.

The company is a well-rounded entertainment platform, with mobile gaming and other offerings designed to thrive in 2022 and beyond. Snapchat is full of video content and shows from social media stars, Hollywood celebrities, and brands like the NFL.