StockNews.AI
SNAP
Barrons
189 days

Snapchat’s Spending Plans Could Draw Out Profitability Further, Analyst Says - Barron's

1. Snap's profitability may decline due to increased spending plans. 2. Guggenheim analysts downgraded Snap to Neutral, lowering target to $11. 3. Snap's Q4 earnings showed slower revenue growth, increasing investment pressure. 4. Competitors like TikTok and Meta add pressure on Snap’s market performance. 5. Snap plans to grow operating expenses by 11-12% in Q1 2025.

4m saved
Insight
Article

FAQ

Why Bearish?

The downgrade and increased expenses highlight ongoing profitability challenges, similar to past downgrades faced by other tech stocks like Twitter during growth investments.

How important is it?

The article discusses key performance metrics and investment strategies that directly affect SNAP's stock outlook.

Why Short Term?

Immediate impact expected due to downgrades and near-term expense increases, not indicating long-lasting structural changes.

Related Companies

Related News