J.P. Morgan analyst Doug Anmuth maintained a Sell rating on Snap today and set a price target of $7.00.
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Doug Anmuth’s rating is based on a combination of factors impacting Snap’s financial performance and market position. The company’s recent quarterly results and guidance fell short of investor expectations, which were heightened by positive trends in the broader advertising industry. Snap’s advertising revenue growth has slowed, with a notable deceleration in the second quarter, partly due to issues with its ad platform and changes in market conditions. Although there has been some recovery, the expansion of Sponsored Snaps inventory has put pressure on effective cost per mille (eCPM) across the platform.
While Snap is making strides in diversifying its revenue through initiatives like Snap+ and expanding its direct response (DR) business, the overall revenue trends remain inconsistent. The company is working towards deeper engagement and monetization, but the need for consistent execution and improved profitability is evident. Anmuth maintains an Underweight rating, setting a price target of $7 by December 2026, reflecting concerns over Snap’s ability to achieve stable growth and profitability in the face of ongoing challenges.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNAP in relation to earlier this year.