Monness analyst Brian White has maintained their neutral stance on SNAP stock, giving a Hold rating today.
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Brian White’s rating is based on a combination of factors that reflect both positive signs and ongoing challenges for Snap. The company demonstrated a solid performance in the fourth quarter of 2024, surpassing expectations in some areas and maintaining a steady growth in daily active users. However, the growth rate has decelerated and there are concerns about the competitive landscape, which is increasingly dominated by larger platforms benefiting from advances in artificial intelligence.
Additionally, the digital advertising market remains highly sensitive to economic fluctuations, posing a risk to Snap’s revenue stability. Despite the company’s efforts to innovate and expand its offerings, such as the simplified Snapchat version, the macroeconomic environment remains precarious. Consequently, White believes that while Snap has potential, the uncertainties warrant a Hold rating rather than a more bullish outlook.
White covers the Technology sector, focusing on stocks such as Apple, Oracle, and MongoDB. According to TipRanks, White has an average return of 20.2% and a 69.12% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $13.00 price target.