(CercleFinance.com) – Snap stock fell more than 8% on the New York Stock Exchange on Monday following a downgrade by Wedbush Securities, which decided to go ‘neutral’ on the photo and video sharing application .
In a research note, the broker explains that it sees a risk concerning the achievement of the turnover objectives of the technology company, in particular because of the implementation by Apple of its tool to block advertising tracking.
Wedbush also evokes a difficult basis of comparison compared to the “exceptional” growth signed during the 2020-2201 financial year and the growing competition from TikTok.
While recognizing that Snap remains popular with younger audiences and that the company is well positioned in augmented reality, the broker believes that the stock’s risk/reward profile is now well balanced.
The analyst therefore reduces his opinion of ‘outperformance’ to ‘neutral’ with a price target lowered from 56 to 36 dollars.
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