Market Overview

This Analyst's Survey Data Doesn't Bode Well For Snapchat

Share:
This Analyst's Survey Data Doesn't Bode Well For Snapchat

Cowen's monthly recurring survey of 2,500 U.S. consumers aged 18 and up reveals some negative trends that could negatively impact Snap Inc (NYSE: SNAP).

The Analyst

Cowen's John Blackledge maintains an Underperform rating on Snap with a price target lowered from $10 to $9.

The Thesis

Cowen's survey of adult aged Snapchat users found that users are spending on average 33 minutes per day on the platform in the second quarter (through May), Blackledge said in a research note. This implies a decline of 7 percent on a year-over-year basis. On a year-to-date basis (through May), Snapchat users also spent 33 minutes on the platform on average, which is flattish over the same five-month period a year ago.

The analyst felt it prudent to lower Snap's second-quarter estimates as follows:

  • Total revenue lowered from $262 million to $248 million;
  • Advertising revenue growth lowered from 47 percent to $39 percent year-over-year;
  • Daily active users lowered from 196 million to 194 million; and
  • EBITDA loss lowered from $198 million to negative $230 million.

For the full fiscal year 2018, the following changes were made to the analyst's model:

  • Total revenue lowered from $1.22 billion to $1.16 billion.
  • EBITDA loss of $750 million versus the consensus estimate of negative $720 million.
  • DAUs lowered from 211 million to 205 million.

Price Action

Shares of Snap were trading lower by more than 8 percent Tuesday at $12.91.

Related Links:

Deutsche Bank Analyst Sees Improvement At Snapchat

Cramer Trashes Snap, Compares Earnings Conference Call To 'SNL' Skit

Latest Ratings for SNAP

DateFirmActionFromTo
Oct 2019UpgradesNeutralBuy
Oct 2019UpgradesUnderweightEqual-Weight
Oct 2019MaintainsNeutral

View More Analyst Ratings for SNAP
View the Latest Analyst Ratings

Posted-In: Cowen John Blackledge SnapChatAnalyst Color Price Target Top Stories Analyst Ratings Tech Best of Benzinga

 

Related Articles (SNAP)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SWKSCascendReiterates100.0
IBMWells FargoMaintains140.0
PNCWells FargoMaintains147.0
TWOUDA DavidsonMaintains17.0
IDYAOppenheimerInitiates Coverage On17.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Doing Good While Searching For Good Performance

Gevo Shares Rip Higher For Second Day In A Row