fbpx
QQQ
+ 0.00
347.74
+ 0%
DIA
-0.06
338.84
-0.02%
SPY
+ 0.12
422.48
+ 0.03%
TLT
+ 0.00
143.27
+ 0%
GLD
+ 0.03
166.11
+ 0.02%

Data Backs Up Concerns The Snapchat Update Is Alienating Users, Stifel Says

by
March 1, 2018 11:30 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Kylie Jenner isn't the only Snap Inc (NYSE:SNAP) user disappointed with the social media's revamped platform, according to data points compiled by Stifel.

The Analyst

Stifel's John Egbert maintains a Hold rating on Snap's stock with an unchanged $17 price target.

The Thesis

Data compiled by Egbert found that Snap's total U.S. estimated audience reach fell 0.1 percent in the January to February period. Audience at the same time across key international ad markets like UK and Canada was down 1.1 percent. The data suggests the social media company experienced a "minor disruption" from the app udate, which drew a "much-publicized backlash from a number of vocal users."

Third-party data from Sensor Tower did find a rise in first-time app downloads through Feb. 12, which could be a result of the increased media attention, the analyst said. But the decline in usage from January and February implies ongoing disruption to Snap's engagement as a whole through the end of February.

While the disruption is "relatively minor" in comparison to the media coverage, it may end up impacting daily active user figures, Egbert said. Investors should pay attention to March trends and whether they show an improvement, allowing the company to hit its DAU estimate of 2.5 million net adds in the first quarter.

Price Action

Snap shares were down 2.31 percent at $16.92 in Thursday morning trading. 

Related Links:

Citi Downgrades Snap To Sell Amid Negative Sentiment Of Snapchat's Redesign

Chart: Snap's Trajectory Looks More Like Twitter Than Facebook

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Is Snapchat's Stock A Reopening Play? Analysts Like Strong Advertising, Map Revenue

Snapchat parent company Snap Inc (NYSE: SNAP) showed strength in its advertising revenue in the first quarter. Analysts saw many positives from the quarterly earnings report and also have some questions ahead. read more

Why Snapchat Could Have A Big Quarter

Snapchat owner Snap Inc (NYSE: SNAP) shares have risen over 350% in the last year. Analysts think there could be more opportunities for the company with its growth in social commerce and younger demographic. read more

Why Booking Holdings Is A Reopening Winner — And Snap, Pinterest Are Not

The continued coronavirus vaccination effort across Western markets should soon translate to "positive reopening data points" across transportation, leisure and travel, according to BofA Securities. read more

Snapchat's 'Open-Ended Growth Story' Solidified After Analyst Day Event

Snapchat parent company Snap Inc (NYSE: SNAP) hosted Tuesday its Analyst Day presentation and many Street analysts agreed the social media company's "open-ended growth story" is achievable. read more