Snap Slapped With $5 Price Target, Falls to All-Time Low
*By Kavitha Shastry*
Shares of Snap fell to a new all-time low Wednesday after BTIG analyst Rich Greenfield slapped the company with a "Sell" rating and cut his price target on the stock to $5 a share.
That would be a 70 percent drop for the company since it went public just about 18 months ago.
In a note to clients, Greenfield wrote, "We are tired of Snapchat’s excuses for missing numbers and are no longer willing to give management 'time' to figure out monetization."
Since going public in March 2017, Snap has fallen short of user growth estimates in five out of six quarters. In its latest report the company posted its first-ever decline in daily usership, with 3 million fewer people logging in to the app.
Greenfield doesn't expect things to change any time soon. Among the issues facing the company, he pointed to declining interest and engagement in Snap's Stories and Discover platforms, a lack of new offerings, a failed redesign, and a dearth of social media influencers who actively use the product.
It's not the first time Greenfield has expressed his frustration with the company. Last October [he admitted](https://cheddar.com/videos/rich-greenfield-monetization-isnt-happening-as-fast-as-we-thought) he overestimated Snap's ability to turn users into revenue sources and cut his forecasts for what the company could bring in. This is the fourth time he's lowered his expectations.
Snap shares traded below the $9 mark early Wednesday. They priced at $17 a share in the IPO.
Lacy Garcia, Founder & CEO of Willow, shares why women, traditionally underserved by fintech, are looking for trust and a personal relationship from their financial advisor.
Alexander Reed, CFA and CIO for Envisage Wealth, breaks down why he thinks rates could stay higher for longer and why real estate, utilities, and regional banks are sectors to avoid.
Big brands that have relied on TikTok videos to reach younger consumers do not appear to be panicking as they wait to see what happens. But they have started planning.
It's been 15 years since the last fatal crash of a U.S. airliner, but you wouldn't know that from a torrent of flight problems that made news in the last three months.
Abortion opponents want the high court to ratify a ruling from a conservative federal appeals court that would limit access to a medication called mifepristone, which was used in nearly two-thirds of abortions last year.
Annie Chechitelli, chief product officer at Turnitin, breaks down how students and teachers alike can learn from artificial intelligence – while still maintaining academic integrity.
Neiman Marcus Group CEO Geoffroy van Raemdonck talks luxury shopping and TikTok, why the company prefers to be private for now, and the benefits of flexible work arrangements.
Rebecca Walser, founder and CEO of Walser Wealth Management, discusses how geopolitical conditions, the bifurcated economy, and other volatility could weigh on markets.
