Snap Inc. faces downgrades and reduced price targets following lackluster first-quarter results and weak ad segment outlook.
Snap Inc. (NYSE:SNAP) saw its price targets slashed by multiple analysts after reporting mixed first-quarter earnings. Freedom Broker downgraded the stock to Hold from Buy and lowered its target to $7 from $8, citing no expected rebound in advertising revenue.
RBC Capital trimmed its target to $8 from $10, maintaining a Sector Perform rating, while Morgan Stanley raised its target slightly to $7 from $6.50, keeping an Equal Weight stance. Analysts noted customer challenges offset by growth in subscriptions and ad platform improvements.
Wall Street’s subdued reaction reflects ongoing concerns over stagnant ad spending by major brands and geopolitical tensions, making a near-term recovery uncertain.