Shares of Snap tumbled on Friday as Wall Street reeled from what were described by one aghast analyst as “terrible” results, and as downgrades rained down on the Snapchat parent. $SNAP tumbled more than 30% premarket.
Shares of Snap Inc. and its peers tumbled on Friday, as Wall Street reeled from what were described by one aghast analyst as “terrible” results, and as downgrades rained down on the Snapchat parent.
Snap’s stock, which was on track to trade at the lowest prices seen since April 2020, has plunged 65.2% year to date through Thursday, while the S&P 500 index SPX, +0.99% has lost 16.1%.“Results suggest a significant deterioration in advertiser demand, which will likely weigh on the sector,” Piper Sandler analyst Thomas Champion wrote in a note to clients late Thursday.
“When fundamentals change this dramatically, it’s hard for us not to change our investment opinion, however belated the call,” said a team at Evercore led by Mark Mahaney, who cut their rating on Snap’s stock to in line from outperform and slashed their price target to $14 from $26 a share. “Dear clients, we rarely ever decide to downgrade a stock right after a terrible earnings print especially after a series of terrible prints, but this time is different,” said Nathanson and the team, who said they’ve “lost confidence” in the company’s ability to forecast its business.
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