[ad_1]
© Reuters. Snap (SNAP) stock drops as analyst downgrades on weak US trends
By Senad Karaahmetovic
JMP analysts downgraded Snap (NYSE:) stock to Market Perform from Outperform as the company faces increasing competition from Meta Platforms (NASDAQ:) and Google’s (NASDAQ:) YouTube.
“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 while both have more mature short-form video products, which we expect to attract more user time over the next few years,” the analysts wrote in a downgrade note.
The downgrade move comes after cutting Snap estimates on declining U.S. time spent on the app. They note that short-form video platforms, such as TikTok, Meta’s Reels, and YouTube Shorts, are all taking share of time from Snapchat’s Discover and Stories.
“Importantly, these are Snap’s most monetizable surfaces as we expect impression growth to be pressured looking ahead,” the analysts added.
The analysts also see SNAP stock as “fairly valued” at current levels. Shares closed at $9.80 on Friday and are down 0.4% in pre-open Tuesday.
[ad_2]
Image and article originally from www.investing.com. Read the original article here.