Snap shares tumble as results miss Wall Street targets

With the bad news, Snap's stock is TANKING.

A number of brokerages recently issued reports on SNAP.

However, its not all sunshine and rainbows on Wall Street, MoffettNathanson's Michael Nathanson changed his "sell" rating, lowering his price target from $15 to $11 per share arguing that the rapid deceleration in Snapchat's user growth "confirms our view that Snap is highly penetrated amongst its core target demos and will hit a ceiling on [daily active user] growth sooner than the stock is pricing in". They noted that the move was a valuation call.

Shares of Snap Inc. JPMorgan Chase & Co. began coverage on shares of Snap in a research note on Monday, March 27th. At one point, the stock came within a few cent of the $17 price set by bankers at its IPO. Blackledge reduced his price target on Snap (from $26 to $21 per share) and maintained an "outperform" rating. Snap now has a consensus rating of "Hold" and an average target price of $22.53.

The company's stock, which was heavily talked about and one of the most valuable tech IPOs in recent years, tumbled in after-hours trading.

Analysts, including Sandler, on Thursday revised their expectations for the stock with at least nine brokerages lowering their price targets.

Investors have also voiced concern amid competitor's tendency to copy some of Snap's flagship features, including its Stories concept. Snap has a 52 week low of $17.59 and a 52 week high of $29.44.

On Wednesday, the parent company of the Snapchat app announced its first earnings since going public three months ago-and it wasn't pretty. The business had revenue of $149.60 million during the quarter, compared to the consensus estimate of $158.32 million. Overall, he anticipates total 2Q revenues to clock in at $191 million, indicating about 18% non-GAAP gross margin. After adjusting for the expected expenses, losses of $188.2 million were reported – greater than analysts anticipated.

ILLEGAL ACTIVITY NOTICE: This report was originally posted by The Cerbat Gem and is owned by of The Cerbat Gem. If you are viewing this article on another publication, it was illegally copied and reposted in violation of U.S. and worldwide trademark and copyright law. And the infinity setting allows viewers to view Snaps without time limits. Wellington Management Group LLP acquired a new stake in Snap during the first quarter worth $6,792,000. Commerzbank Aktiengesellschaft FI acquired a new position in Snap during the first quarter worth $2,837,000. But Snap said it has no plans to give any financial guidance, because the company doesn't want to make short-sighted decisions for the benefit of quarterly results. In the quarter before however, the company grew that figure by 48%.

In its ad revenue forecast for the next few years, eMarketer predicted that Snapchat will continue to see faster revenue growth than any other digital company, although future growth rates are expected to be slower than they were in 2016.

On different platforms like Instagram, Facebook or Twitter, you can judge someone's popularity by how many followers they have, how much time people spend looking at their content and how many people can see a single post.

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