Snap: stock falls with analyst's downgrade

(CercleFinance.com) - Snap shares at one point fell by over 8% on Monday in New York, bottoming out at just over 28 dollars at lunchtime, following a downgrade by Wedbush Securities, which adopted a "neutral" rating on the stock of the photo and video sharing app.


In a report, the broker said it sees a risk to the technology company's revenue targets, particularly due to Apple's implementation of its ad tracking blocker.

Wedbush also cites a difficult comparison base to the "exceptional" growth reported in fiscal 2020-2201 and growing competition from TikTok.

While acknowledging that Snap remains popular with younger people and that the company is well positioned in augmented reality, the broker believes that the stock's risk/reward profile is now well balanced.

As a result, the analyst downgraded the stock from "Outperform" to "Neutral", slashing the corresponding target price from 56 dollars to 36 dollars.

In the end, the share limited its losses, having closed down 1% at just under 32 dollars.


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