SNAP Hits All-Time Intraday Low On Wall Street Pessimism, Weak Guidance And Fresh Lawsuit
Snap Inc.'s stock (SNAP) reached a record low after a price target reduction by Citi, weak Q1 guidance, and a lawsuit in Texas.Summary
Snap Inc. (SNAP) experienced a significant downturn, with its stock hitting an all-time intraday low of $4.72 on Thursday. This decline followed Citi lowering its price target from $10 to $6 while maintaining a ‘Neutral’ rating, citing continued headwinds in brand advertising. While Snap’s Q4 revenue of $1.72 billion surpassed estimates, its Q1 revenue forecast of $1.5 billion to $1.53 billion fell short of analyst expectations. The company also noted that potential revenue from a Perplexity integration was not included in its Q1 guidance. Adding to the negative sentiment, Texas Attorney General Ken Paxton filed a lawsuit against Snap, alleging insufficient warnings about inappropriate content and addictive design features within the app. Despite the stock's poor performance, retail sentiment on Stocktwits remained ‘extremely bullish’, with some investors expressing hope for a potential rebound driven by the Perplexity partnership. Over the past 12 months, SNAP stock has fallen by 55%.
(Source：Asianet Newsable)