Snap Slapped With $5 Price Target, Falls to All-Time Low
*By Kavitha Shastry*
Shares of Snap fell to a new all-time low Wednesday after BTIG analyst Rich Greenfield slapped the company with a "Sell" rating and cut his price target on the stock to $5 a share.
That would be a 70 percent drop for the company since it went public just about 18 months ago.
In a note to clients, Greenfield wrote, "We are tired of Snapchat’s excuses for missing numbers and are no longer willing to give management 'time' to figure out monetization."
Since going public in March 2017, Snap has fallen short of user growth estimates in five out of six quarters. In its latest report the company posted its first-ever decline in daily usership, with 3 million fewer people logging in to the app.
Greenfield doesn't expect things to change any time soon. Among the issues facing the company, he pointed to declining interest and engagement in Snap's Stories and Discover platforms, a lack of new offerings, a failed redesign, and a dearth of social media influencers who actively use the product.
It's not the first time Greenfield has expressed his frustration with the company. Last October [he admitted](https://cheddar.com/videos/rich-greenfield-monetization-isnt-happening-as-fast-as-we-thought) he overestimated Snap's ability to turn users into revenue sources and cut his forecasts for what the company could bring in. This is the fourth time he's lowered his expectations.
Snap shares traded below the $9 mark early Wednesday. They priced at $17 a share in the IPO.
Surprise, surprise: tech is still the sector to watch, according to Karyn Cavanaugh, Chief Investment Officer at Carolinas Wealth Management. Learn how to properly diversify your portfolio.
Facebook and Instagram users will start seeing labels on AI-generated images in their feeds. Hopefully this will save time for everyone zooming in each picture to see how many fingers someone's hand has.
Seth Schachner, Managing Director at StratAmericas, weighs in on Spotify earnings and why that headline-grabbing deal with Joe Rogan could be worth that $250 million.
Mitch Roschelle, Managing Director at Madison Ventures, shares why investors may be waiting longer than expected for those interest rate cuts, and why he’s watching tech, oil, and homebuilder stocks.
Amazon saw 24% growth in their Thursday Night Football audience in 2023. Subscribers will be rewarded with even more sports, but not without enduring more ads — unless they pay extra, of course.
Low unemployment + 350 thousand new jobs in January = ...more layoffs? A bunch of tech and retail companies have laid and are laying off employees after a nationwide hiring surge during the pandemic.
The most magical place on Earth wants a protective order to keep Gov. Ron DeSantis' appointees from knowing how the magic happens. A federal judge dismissed a separate Disney lawsuit last week.
