What's Going On With Snap Stock Today?

Snap Inc SNAP shares got a lift in premarket trading Wednesday before pulling back and turning negative after the open. Here’s a look at what’s going on.

What To Know: Snap shares got a boost early Wednesday after Congress passed a bill to ban or force a sale of popular social media platform TikTok, per several reports.

The U.S. Senate approved the bill 79 to 18 as part of an aid package for Israel, Ukraine and Taiwan. The proposal is being sent to President Joe Biden's desk, and is expected to be signed this week.

Once signed, parent company ByteDance will have approximately nine months to sell TikTok. If the company fails to divest the popular app within that time, it will face a national ban. The lawmakers pushing to implement restrictions on TikTok have cited concerns that ByteDance ownership may allow the Chinese government to access American user data.

Snap shares may also be experiencing increased volatility ahead of earnings. The company is scheduled to report financial results for the first quarter after the market close on Thursday. Analysts are calling for an earnings loss of 5 cents per share on revenue of $1.119 billion, according to estimates from Benzinga Pro.

Check This Out: GOP Senator Who Owns Meta Stock Denies Conflict of Interest Ahead Of TikTok Ban Vote: ‘I Am Not Fighting Against A Company’

Is SNAP A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Snap‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Snap does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Snap will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

SNAP Price Action: Snap shares were down 1.84% at $11.18 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Snap.