What’s Going On With Snap Stock Today?

Snap Inc. SNAP shares are volatile Monday following a double downgrade from Morgan Stanley.

Morgan Stanley analyst Brian Nowak downgraded Snap from an Overweight rating to Underweight and lowered the price target from $17 to $8, citing rising execution risks and lower visibility.

The Morgan Stanley analyst has become increasingly cautious on Snap’s forward revenue and profit outlook following the company’s disappointing earnings results.

“We don’t think SNAP’s ad business is as developed (and performance, ‘always on’ driven) as we previously did … and growing this type of business through a weakening macro environment is likely to be even more challenging,” Nowak wrote Monday in a note to clients.

As the economy weakens, Nowak anticipates it becoming increasingly difficult for Snap to convince new advertisers to try the company’s platform.

See Also: Why This Morgan Stanley Analyst Has Double Downgraded Snap

Wolfe Research analyst Deepak Mathivanan also downgraded the stock on Monday. The analyst cut Snap from an Outperform rating to Peer Perform.

UBS analyst Lloyd Walmsley maintained Snap with a Buy rating and lowered the price target from $17 to $15.

SNAP Price Action: Snap shares hit new 52-week lows on Monday before bouncing back.

The stock was down nearly 4% in pre-market trading before staging a reversal at the open. Snap was up 0.35% at $9.99 at press time, according to data from Benzinga Pro.

Photo: Stock Catalog from Pixabay.

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