Analyst says 'the darkest days of this economic downturn are ahead of us,' and Snap will be the first out of the gate to detail exactly how dark it is for social-media companies.
The last time Snap Inc. reported quarterly results, the roof caved in and its shares lost a quarter of their value.
“Snap is the worst-performing stock in our coverage universe thus far in 2022,” Brian White of Monness Crespi Hardt said in a note Monday. “Moreover, we believe the darkest days of this economic downturn are ahead of us.” Accordingly, Truist Securities analyst Youssef Squali said he is adjusting estimates for Snap, Meta, Google and Amazon.com Inc. AMZN, +6.45% to “reflect ST headwinds from a strengthening US$, and higher probability for an economic recession in 2023.”“We’re now baking in a mild recession in 2023, which should pressure growth, but strong cost containment should help protect margins,” Squali said in a Sept. 28 note that maintained a hold rating and price target of $12 a share.
Revenue: Analysts on average expect Snap to report $1.13 billion in third-quarter revenue, relatively flat from $1.07 billion a year ago. Estimize contributors predict $1.13 billion on average. What analysts are saying The precarious state of digital advertising through the first half of 2023 prompted MKM Partners analyst Rohit Kulkarni to lower his price target on Snap shares to $15 from $17 on Friday. In a note, he said he remains “cautious about the overall industry ad-spend outlook over the medium-term.”