Shares of Snap Inc. are off about 3% in premarket trading Wednesday after Citi analyst Jason Bazinet downgraded the stock to neutral from sell, arguing that investor expectations for 2020 and 2021 revenues are too high. "While the market has embraced encouraging pre-COVID-19 results - in January and February, 2020, we believe investors are now too bullish on both DAU (daily active user) growth and monetization trends," he wrote, as Snap's stock is trading above where it was before the COVID-19 outbreak began rocking the U.S. markets. "While Snap initially benefited from stay-at-home orders with increased user engagement, third-party data suggests momentum in DAU growth may not be sustainable," Bazinet wrote. He upped his price target to $14 from $10 in conjunction with the downgrade. Snap's stock has gained 3% over the past three months as the S&P 500 has fallen 14%. Read More...
Shares of Snap Inc. are off about 3% in premarket trading Wednesday after Citi analyst Jason Bazinet downgraded the stock to neutral from sell, arguing that investor expectations for 2020 and 2021 revenues are too high. “While the market has embraced encouraging pre-COVID-19 results – in January and February, 2020, we believe investors are now too bullish on both DAU (daily active user) growth and monetization trends,” he wrote, as Snap’s stock is trading above where it was before the COVID-19 outbreak began rocking the U.S. markets. “While Snap initially benefited from stay-at-home orders with increased user engagement, third-party data suggests momentum in DAU growth may not be sustainable,” Bazinet wrote. He upped his price target to $14 from $10 in conjunction with the downgrade. Snap’s stock has gained 3% over the past three months as the S&P 500 has fallen 14%.
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