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Analyst Rating Hits Snap (SNAP) Shares, Adding Pressure to Company Already Facing Ad Platform Lawsuit, According to Hagens Berman

1. Mizuho initiated coverage on SNAP with a Neutral rating and a $9 target. 2. Weak advertising feedback contributed to the Neutral rating from Mizuho. 3. Snap faces a class action lawsuit for allegedly misleading investors. 4. Ad revenue growth significantly slowed from 9% to 1% recently. 5. Management's failure to disclose issues may lead to substantial scrutiny.

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FAQ

Why Very Bearish?

The class action lawsuit and negative analyst coverage indicate potential operational failures. Historical cases, like Groupon's, often resulted in prolonged stock price declines following similar allegations.

How important is it?

The combination of a class action lawsuit and a bearish analyst rating could dissuade investors. Events like this significantly affect market perceptions and stock performance.

Why Short Term?

Immediate effects from negative news can last weeks, impacting investor sentiment. Similar situations have resulted in quick stock sell-offs and extended recovery periods.

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SAN FRANCISCO, Oct. 01, 2025 (GLOBE NEWSWIRE) -- Shares of social network Snap Inc. (NYSE: SNAP) fell 6.6% after investment firm Mizuho reportedly initiated coverage on the company with a Neutral rating and a $9 price target. Mizuho purportedly described the company as a “show-me story” and cited weak feedback from Snap’s advertising channels. This analyst action comes on the heels of a federal securities class action lawsuit filed against Snap and certain senior executives, alleging the company presented a misleading picture of its digital advertising platform's performance and future growth prospects. Video: https://youtu.be/0cFMfKT71ec Hagens Berman urges investors in Snap who suffered significant losses to submit your losses now. Class Period: Apr. 29, 2025 – Aug. 5, 2025Lead Plaintiff Deadline: Oct. 20, 2025Contact the Firm Now: Phone: 844-916-0895Email: SNAP@hbsslaw.comWebsite Form: www.hbsslaw.com/investor-fraud/snap Core Allegations of Snap Securities Fraud Lawsuit: The securities class action alleges that the company experienced significant negative consequences from a major “execution error” related to a recent change in its ad platform but failed to disclose this crucial information to investors throughout the Class Period. The alleged deception came to light on August 5, 2025, when Snap reported its Q2 2025 results. The company admitted it “shipped a change that caused some campaigns to clear the auction at substantially reduced prices”. This admission confirmed a significant slowdown in ad revenue growth, which had decelerated from 9% in Q1 to just 1% in April. News of the failure caused Snap’s stock price to tumble by approximately 17% the following day. The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025. Hagens Berman’s Investigation on Behalf of Investors Hagens Berman, a prominent shareholder rights firm, is actively investigating the alleged claims and urges investors who suffered substantial losses to come forward. “The lawsuit alleges that a major internal failure—the ‘execution error’—was concealed from investors. We’re focused on determining whether management knew but failed to timely disclose this core operational problem,” said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in Snap and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now. If you’d like more information and answers to frequently asked questions about the Snap case and our investigation, read more. Whistleblowers: Persons with non-public information regarding Snap should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SNAP@hbsslaw.com. About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895 A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/0ad0a1a0-eb68-4f5f-9402-98622c67dda9 A video accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/020778aa-b41e-4be2-bd06-6643a8340d41 Snap Inc. (SNAP) Faces Class Action Over Ad Platform, Misleading Statements Alleged A securities class action lawsuit has been filed against Snap Inc. (NYSE: SNAP) and certain senior e...

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