JMP downgraded Snap’s stock rating
2023.01.17 09:52
JMP downgraded Snap’s stock rating
By Kristina Sobol
Budrigannews.com – Snap (NYSE:) was downgraded by JMP analysts. as the company faces increasing competition from Meta Platforms (NASDAQ:), the stock has been downgraded to Market Perform from Outperform. likewise Google’s (NASDAQ:) YouTube.
In a downgrade note, analysts wrote, “While we acknowledge we are late with this downgrade, it reflects our preference for Meta (valuation) and Google (search has higher revenue visibility) over Snap” because both companies have more mature short-form video products that they anticipate will attract more user time over the next few years.
Following a reduction in Snap’s estimates due to decreasing U.S. app usage, the company decided to downgrade. They point out that Snapchat’s Discover and Stories are losing time to short-form video platforms like TikTok, Meta’s Reels, and YouTube Shorts.
The analysts went on to say, “Importantly, these are Snap’s most monetizable surfaces as we expect impression growth to be pressured in the future.”
Additionally, the analysts believe that SNAP stock is currently “fairly valued.” Shares are down 0.4% in pre-open Tuesday, closing at $9.80 on Friday.
More Asset management at Goldman Sachs to no avail
