Snap shares down 2.6% as JPMorgan cuts price target

  • JPMorgan (NYSE:JPM) reduces Snap’s (NYSE:SNAP) price target from $20 to $18, citing concerns about the company’s ability to monetize and scale its ad business and Snap’s lack of profit.
  • Other Snap concerns include competition from the likes of Facebook (NASDAQ:FB) and the company’s ability to continue adding new users.
  • JPMorgan is conservative on the future of the smart sunglasses Spectacles, dropping its original projection of 915,000 units with $119M in sales this year down to 429,000 and $56M.
  • The analyst note also noted that a share lock-up on June 29 could create volatility as 70% to 80% of shares become available for sale.
  • Snap shares are down 2.61% premarket.

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