BTIG's Rich Greenfield on Snap: "I Wouldn't Touch the Stock"
Shares of Snap fell for a second straight day Thursday, as investors continued to digest the company's latest earnings report. BTIG Analyst Rich Greenfield says he's not impressed by the company's planned redesign or the 12% stake just disclosed by China's Tencent.
"It's pretty shocking how fast this thing has unraveled," he told Cheddar in an interview.
The messaging app, which considers itself "a camera company," reported revenue of just $207 million during the third quarter, well below analyst estimates of $237 million. User growth also came in less than expected, with daily active users rising by just 5 million.
CEO Evan Spiegel also announced the company would be heavily redesigning its app to make it easier to use. Business Insdier reports that the changes include separating friend-based posts from content provided by the company's publishing partners and adding more posts from verified celebrity influencers. Snap says the overhaul will result in some short-term disruptions but hopes it will pay off in the long run.
Greenfield, though, isn't impressed.
"They're doing a huge pivot," he says. "If it works there's obviously huge potential, but there's also huge risk when you're making this big of a pivot."
The analyst last month slashed his projections for Snap's growth, saying he now expects 2018 revenue of just about $1.6 billion compared to earlier forecasts for $2.5 billion. In a research note he apologized for his earlier optimism with the hashtag #wearesorry.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
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