Snap (NYSE:SNAP) is scheduled to report its first-quarter 2023 results on April 27, after the market closes. The business may experience its fifth consecutive quarter of losses due to weakness in the advertising market brought on by the general slowdown in the economy and fierce competition from platforms like TikTok.
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On the plus side, it’s likely that Snap has benefited from an increase in Snapchat+ subscribers. Markedly, the TipRanks’ Website Traffic Tool suggests a decent performance in the to-be-reported quarter. According to the tool, Snap’s website traffic registered an 18.3% sequential rise in global visits during the quarter.
Meanwhile, the Street expects Snap to post a loss of $0.23 in Q1, which is wider than the prior-year quarter figure of a loss of $0.22. Further, analysts project net revenue of $1.01 billion, down 4.7% from the same quarter last year.
Two weeks ago, Monness analyst Brian White maintained a Hold rating on SNAP stock. According to the analyst, the company’s performance in 2023 might continue to be impacted by its internal issues and competitive scenario.
It’s interesting to note that the five-star analyst expects higher revenue and earnings than the Street. Additionally, White forecasts that in Q1, Snap’s daily active user base will increase 15% year-over-year to 385 million.
What is the Price Target for Snap Stock?
Overall, Wall Street analysts are sidelined on SNAP stock. On TipRanks, Snap has a Hold consensus rating based on five Buys, 18 Holds, and three Sells ratings. Also, the average price target of $10.70 implies 5.3% upside potential from current levels.
Ending Thoughts
The company appears to be working hard to increase user engagement by introducing new products. Additionally, Snap is investing in cutting-edge technologies like AI chat, which could lead to rapid long-term growth. However, the company’s main concerns continue to be a weak balance sheet, a cash crunch, and slow revenue growth.
