Snap shares pricing in ‘overly optimistic’ growth, says Oppenheimer

Oppenheimer says Snap shares are pricing “overly optimistic” advertising revenue growth, “despite challenges of a sub-scale platform.” With competition continuing to increase, it will be difficult for Snap to grow share of social time spent, the analyst tells investors in a research note. Meanwhile, the company has not been willing to integrate third party service providers, which would deepen its advertiser bench, says Oppenheimer. The firm believes Street estimates appear aggressive going into Q4 and reiterates a Perform rating on Snap.