Snapchat's growth stalls in Facebook's shadow in 1Q report

Vetr upgraded Snap from a "strong sell" rating to a "sell" rating and set a $20.40 price target on the stock in a research report on Monday, March 13th. Goldman Sachs Group Inc assumed coverage on shares of Snap in a report on Monday, March 27th. Nomura initiated coverage on Snap in a research report on Thursday, March 2nd. The company has a consensus rating of "Hold" and an average price target of $21.91.

Shares tumbled 23 percent in after-hours trading to wipe some $6 billion from Snap's market value, a reversal for the company after a red-hot March initial public offering that was the biggest for a USA tech company since Facebook Inc's 2012 debut. The stock had a trading volume of 131,603,899 shares. The firm has a 50 day moving average of $21.70 and a 200-day moving average of $21.79. The stock's market cap is $15.71 billion.

DJ Kang, head of Asia for consumer research firm ValuePenguin, said Snapchat stock is overvalued primarily due to the persistent threat from Facebook and Instagram, forecasting that it is possible that Snapchat could even report a decline in users from the fourth quarter.

Snap (NYSE:SNAP) last released its quarterly earnings results on Wednesday, May 10th.

Snapchat CEO Evan Spiegel is under fire after his performance during Snap's first-ever earnings call. As of December 31, 2016, on an average, 158 million people used Snapchat every day to Snap with family, watch Stories from friends, see events from around the world, and explore curated content from publishers.

In addition, average revenue per user (ARPU) was up from $0.32 in the same quarter past year to $0.90 in the first quarter. Analysts were only anticipating a loss per share of $0.19.

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Several large investors have recently made changes to their positions in SNAP. First Trust Advisors LP bought a new stake in Snap during the first quarter valued at approximately $10,130,000.

In other words, Facebook's camera features makes it more of a "Yahoo"-like company and less like a "Google". The Company's flagship product, Snapchat, is a camera application that helps people to communicate through short videos and images known as a Snap.