Snapchat Falls to $15

TL;DR

Snapchat shares tumble as Morgan Stanley, the lead underwriter, downgrades the stock due to concerns about Instagram competition.

Transcript

oh my goodness analysts are pure idiots and that's putting it as nice as I possibly can analysts are complete idiots you can't trust an analyst for anything I would trust an email from the Congo that tolds tells me I just wanton a million dollars before I would trust an analyst guys this is pure pure Insanity these analysts it is unbelievable guys ... Read More

Key Insights

• ❓ Analysts' downgrades can significantly impact stock prices.
• ❓ Competition from established platforms like Instagram poses a challenge for Snapchat.
• 👤 Snap's user growth has been slower than anticipated.
• 🫵 The video emphasizes the unreliability of analysts and advises viewers to be cautious about trusting their recommendations.
• 😀 Snap's value is questioned, but its revenue growth and popular apps indicate potential value in the long term.
• 🍭 The video speculates about the possibility of further stock price decline, comparing Snapchat's situation to Facebook's after its IPO.

Questions & Answers

Q: Why did Snap shares fall?

Snap shares fell after Morgan Stanley downgraded the stock, citing concerns about competition from Instagram and slowing user growth.

Q: What were the reasons for the downgrade?

The downgrade was based on the perception that Snap's user growth trends were weaker than expected and that advertisers still favored established platforms over Snapchat.

Q: What is Morgan Stanley's price target for Snap?

Morgan Stanley lowered its price target for Snap to $16 from $28, expressing doubts about the company's ability to innovate and improve its ad products.

Q: How does this downgrade reflect on analysts?

The video argues that analysts are unreliable and often make incorrect calls, highlighting this downgrade as an example.

Summary & Key Takeaways

• Snap shares fall after Morgan Stanley downgrades the stock due to concerns about its ability to compete with Instagram.

• Analysts cite slowing user growth and favoritism towards established platforms as reasons for the downgrade.

• Morgan Stanley cuts its price target to $16 from $28, expressing doubts about Snapchat's ability to innovate and improve its ad products.