UBS downgrades Snap after earnings, says rising competition will keep pressure on stock

  • 📰 CNBC
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 72%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

UBS' downgrade comes after Snap reported its fourth-quarter results. Earnings came in slightly above estimates, but revenue was lighter than expected.

Snap may have trouble keeping up with ever-rising competition going forward, according to UBS. Analyst Lloyd Walmsley downgraded the social media company to neutral from buy. He also reiterated a price target of $10, which implies downside of 13.5% from Tuesday's close, and trimmed his 2023 revenue outlook on Snap. "We see increasing competition everywhere," analyst Lloyd Walmsley wrote in a client note on Wednesday.

In a letter to investors, Snap also called 2022 a "challenging year" that was marked by "macroeconomic headwinds, platform policy changes, and increased competition," as a slowing economy led businesses to slash their digital ad budgets and Apple's iOS privacy update limited targeting capabilities. Other analysts also grew more cautious on the stock after Snap's latest quarterly report. Goldman Sachs lowered its price target on the stock to $8 per share from $10.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Let the dust settle, then scale in to calls and shares before the US bans tik tok

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Snap suffers worst sales growth yet in holiday quarter, stock plunges after earnings missSnap reported fourth-quarter revenue of $1.3 billion, flat compared with a year ago, the worst year-over-year revenue growth. $SNAP said it lost $288.5 million, or 18 cents a share, compared with earnings of a penny a share last year. Another quarter another disappointing earnings from $SNAP
Source: MarketWatch - 🏆 3. / 97 Read more »