TOP ANALYST: There are only 2 things that really matter for Snap's stock (SNAP)

pulse

August 31, 2017 4:26 PM

Snap's stock price has been living under the shadow of its IPO for months but could break out soon.

Snap has been living under the shadow of its $17 initial public offering price for much of the last three months, but things could be looking up soon.

According to Mark Mahaney, an analyst at RBC, Snap has to do just two things to see its stock price climb above its IPO price.

There is a decent chance this will happen soon, according to Mahaney. He says the company has some of the "best product innovation" in the space, and new features like the company's "Snap Map" will help drive user growth as soon as the fourth quarter of this year.

Investors have been comparing Snap's user growth to the massive size of Instagram and Facebook, which Mahaney thinks is unfair. While he said that Facebook has almost assuredly won the social media war, there is still room for Snap, and the two companies serve entirely different purposes.