‘Awful’ Snap sales just wiped $76 billion off social media stocks

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Concerns about the outlook for online advertising

Wall Street analysts were quick to react, with at least nine brokerages cutting recommendations on Snap’s stock, while many more trimmed their price targets. The shares have slipped 65 per cent this year, but the average 12-month price target has sunk by more than 72 per cent in the same period.Article content

Snap didn’t issue financial guidance for the third quarter, except to say that revenue so far in the period is about flat compared with last year. Management also reiterated it plans a “substantially reduced rate of hiring,” echoing plans by Apple Inc. and others.

 

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