Snap downgraded to Market Perform from Outperform at Citizens JMP

Citizens JMP downgraded Snap (SNAP) to Market Perform from Outperform without a price target following the Q2 report. Snap’s advertising revenue grew just 4% year-over-year in the quarter, suggesting a lost of market share to other scaled ad platforms, the analyst tells investors in a research note. The firm adds that the company’s North American daily active users fell 1M quarter-over-quarter for the second straight quarter. With artificial intelligence improving Meta’s content and driving engagement at TikTok, JMP thinks time spent on Snapchat will continued to be pressured in its most highly monetized markets. As such, the firm sees a balanced risk/reward in Snap shares.