Snapchat Stock Down 21% in January – Time to Buy SNAP Stock? – Economy Watch

The price of Snapchat stock has declined 21% so far this month as tech sector issues continue to suffer from a spike in US Treasury yields and an overall risk-off attitude from market participants. Just yesterday, SNAP experienced a 10% single-day decline after analyst John Blackledge from Cowen downgrade the company to market-perform, down from a previous outperform rating, citing that changes in Apple’s operating system, which now allow users to opt-out of being tracked by applications for advertising purposes, could weigh on the firm’s performance down the road. According to the analyst, these “near-term headwinds” are making the current valuation look “a bit rich”. The analyst also cited a survey applied to 54 US ad buyers who identified “noticeable declines in return on investment” and other negative effects of this change in Apple’s iOS in the effectiveness of their campaigns. The downbeat tone of this note from Cowen is adding up to other negative remarks from analysts that have followed the company’s latest disappointing quarterly report. According to data from MarketBeat, JP Morgan, Piper Sandler, Morgan Stanley, Bank of America, Credit Suisse, and many other firms lowered their price targets for SNAP stock following the release of the firm’s…
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