Benchmark Co. analyst Mark Zgutowicz has maintained their neutral stance on SNAP stock, giving a Hold rating on April 30.
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Mark Zgutowicz’s rating is based on a combination of factors that reflect both opportunities and challenges for Snap. The decision to maintain a Hold rating stems from uncertainties in the macroeconomic environment, such as tariffs and changing consumer sentiment, which have influenced Snap’s decision to withhold 2Q guidance. Additionally, the shift towards performance-based advertising presents both risks and opportunities for Snap, as it adapts to the evolving advertising landscape.
Moreover, Snap’s progress in its direct response (DR) ad tech stack, which now accounts for a significant portion of its revenue, shows promise with improvements in pixel purchase optimization and targeting capabilities. However, despite these advancements, Snap’s brand advertising remains weak due to the broader industry shift. New monetization opportunities, such as Promoted Places and Sponsored Snaps, are being explored, but they are still in the early stages and have yet to fully materialize in terms of revenue impact. These factors collectively contribute to the Hold rating, reflecting a cautious yet optimistic outlook on Snap’s potential growth.
According to TipRanks, Zgutowicz is a 5-star analyst with an average return of 15.4% and a 53.15% success rate. Zgutowicz covers the Communication Services sector, focusing on stocks such as Stagwell, Snap, and Taboola.com.
In another report released on April 30, Canaccord Genuity also maintained a Hold rating on the stock with a $9.00 price target.