It's a big morning for social media stocks
Social media stocks are buzzing this morning on Facebook's (FB) cryptocurrency announcement. Sector peers Snap Inc (NYSE:SNAP) and Pinterest Inc (NYSE:PINS) are also in focus thanks to bullish analyst notes. So, let's dig into SNAP and PINS shares this morning.
Starting with the Snapchat owner, Aegis Capital upgraded its rating to "buy" from "hold" and lifted its price target to $17, citing improving fundamentals. BTIG also weighed in, boosting its price target to $20 from $15. As such, Snap shares are up 5.8% at $14.33, which is its highest point since June 18 of last year, extending their huge year, now up 160% year-to-date.
Call buying has remained popular during the shares' ascent, and that trend is continuing this morning. Almost 60,000 call options have already traded, compared to a daily average of 23,000, and there are new positions opening at the June 14.50 call, the most popular contract. These are likely bulls betting on more upside through Friday's close, when the contracts expire.
PINS stock, meanwhile, is trading up 1.8% at $28.35, after Wedbush began coverage with an "outperform" designation and $33 price target. The brokerage firm said the company is "unique to any other media platform," and added that the "advertising actually improves the consumer experience."
This sets Pinterest up for its highest close in a month, which could be good news for options traders, since call buying has more than doubled put buying in the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Calls are crossing at an accelerated rate this morning, too, lead by the July 30 call. New positions are opening at the November 34 call