While the stock has gotten a lot cheaper, Snap’s competitive position has become even worse. Just three months ago, I warned readers to “ Lock in Your Snap Inc Gains Before They Disappear.” Since then, SNAP stock has tanked from $20 to under $11 today.Įven that dramatic decline is hardly the end of Snap’s troubles, however. In fact, the next move for SNAP stock should be a trip to single digits. Unfortunately, for Snap Inc (NYSE: SNAP), don’t count on a big bounce. He also trimmed his price target to $9.0 a share that doesn’t represent a meaningful upside from here.What happens after a stock loses half its value in just three months? Believers in the idea of reversion to the mean would suggest that the next move should be upward. We remain side-lined on the view that this is a largely upper-funnel platform offering structurally lower conversions levels leading to share loss, barring a fuller macro rebound. Still, RBC Capital Markets analyst Brad Erickson reiterated his “neutral” rating on Snap stock today and said:

Snap attributed the weakness in the recent quarter to changes it made to its ad platform that it agreed are disruptive for now but will eventually help increase click-through conversions in the future. Average revenue per user of $2.58 also missed expectations.Global DAUs climbed to 383 million – a million below estimates.Consensus was a penny per share loss on $1 billion in revenue.Revenue slipped 7.0% year-on-year to $988.6 million.Earned a penny per share on an adjusted basis in Q1.Per-share loss narrowed marginally from 22 cents to 21 cents.Lost $328.7 million versus the year-ago $359.6 million.For the year, Snap stock is down 4.0% at writing. Last week, the social media company launched a series of AI products.

Snap now sees between $1.0 billion to $1.09 billion in revenue in its current quarter – slightly below the Street estimates and suggesting another 6.0% year-on-year hit to revenue, as per its letter to shareholders. The stock is under pressure because the company’s internal forecast couldn’t cheer the shareholders either. Snap Inc ( NYSE: SNAP) opened nearly 20% down on Friday after reporting a decline in revenue for it first financial quarter.

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