Benchmark Co. analyst Mark Zgutowicz has maintained their neutral stance on SNAP stock, giving a Hold rating today.
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Mark Zgutowicz has given his Hold rating due to a combination of factors affecting Snap’s current and future performance. One of the primary concerns is the abrupt slowdown in growth, particularly after a promising first quarter in North America. The lack of clarity on the reasons behind this deceleration, aside from minor impacts from certain advertisers, raises uncertainty about Snap’s ability to maintain its growth trajectory.
Additionally, Snap’s dependency on direct response advertising, which constituted a significant portion of its revenue, is seen as vulnerable in a tightening macroeconomic environment. The company’s revenue growth, especially in comparison to its social media peers, suggests potential market share losses. Despite some positive revenue performance in North America, the overall growth outlook remains clouded by regional challenges and potential expense adjustments, leading to a cautious stance with the Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNAP in relation to earlier this year.