Spotify and Snapchat profit from analyst update announcement

Citing the low valuations of Internet stocks, Guggenheim upgrades Snap (NYSE: SNAP) from Neutral to Buy and increases its target price from $ 22 to $ 28. Spotify (NYSE: SPOT) has been upgraded from Sell to Neutral, increasing its target price from $ 230 to $ 250. And Pinterest (NYSE: PINS) started with Buy and $ 48. "At its core, 'Internet' companies are software development and sales companies that focus largely on consumer rather than corporate applications," writes analyst Michael Morris, who says the ratings are low based on this comparison. Morris also believes investors are underestimating the potential long-term growth of the advertising market in this space and "the sustained revenue and earnings growth potential". Snap shares are up 3.2% pre-listing to $ 25.47. Spotify is up 3% to $ 243, and Pinterest is up 2.3% to $ 40.80. Snap has an average bullish rating from Wall Street analysts, while SA Contributors and Quants have a neutral rating.