JPMorgan analyst Doug Anmuth double downgraded Snap to Underweight from Overweight with a price target of $9, down from $24, post the Q2 results. Snap’s reported growth of 13% showed greater deterioration than expected, Q3-to-date is trending around flat year-over-year, which could mean down quarter-over-quarter, and in not providing guidance for Q3. Snap suggested that forward visibility remains very challenging, Anmuth tells investors in a research note. The analyst says that while Snap believes the primary driver of its advertising weakness is the macro environment, platform policy changes from Apple and increased competition are also significant factors. He believes management now needs to rebuild credibility and re-establish a track record of execution.
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