Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
It's too early for a bearish stance on Snap Inc (NYSE:SNAP), but the social media platform's recent engagement and user trends are "not encouraging," according to Jefferies.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Jefferies' Brent Thill maintains a Hold rating on Snap with a price target lowered from $14 to $11.
The Thesis
The most recent third-party data analysis of Snap's user engagement in multiple countries shows daily active users and time spent on the social media platform are trending in the "wrong direction," Thill said in a Wednesday note.
Third-party findings from SimilarWeb shows U.S. DAUs are near their lowest level since July 2017, and U.S. time spent on the platform peaked around July and has been trending lower on a month-over-month basis since then, the analyst said.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Similar trends are being observed in key international markets including the United Kingdom, Spain, Germany, France and Australia, Thill said. If these global trends continue to worsen as users churn to rival social media platforms, it could "cause a negative flywheel" effect, as remaining loyal users have less of a reason to remain on the platform themselves, he said.
Snap's efforts to offer a compelling Android experience remain a concern, as a full product has yet to be released, the analyst said. A proper platform on Android devices is vital for the company to fuel growth, especially in Android-dominated regions, he said.
The general advertiser sentiment on Snap's platform is "neutral to slightly positive," and management has succeeded in shifting from large brands to smaller advertisers thanks to targeting, measurement and conversion tracking tools, Thill said. Yet if user metrics continue to trend negative, it is appropriate to ask how long advertisers will remain on the platform if user numbers aren't growing, he said.
Price Action
Snap shares were falling 9.44 percent to $8.96 at the time of publication Wednesday.
Related Links:
Wedbush Turns Bullish On Snap, Expresses Increased Confidence In Corporate Governance
Snap's Brain Drain Continues With Chief Strategy Officer's Exit
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.