BEVERLY HILLS, Calif. (CelebrityAccess) Snap Inc. took an absolute nosedive at opening bell this morning, plunging a whopping 21 percent after reporting first-quarter sales and daily active users that missed estimates.
At least three analysts cut their ratings as Wall Street blames Snapchat’s contoversial app redesign, according to Bloomberg.
Deutsche Bank, Summit Insights, Openheimer & Co., Credit Suisse, Morgan Stanley, Piper Jaffray and Evercore ISI were all decimating in their criticism of Snap and downgraded their target prices significantly from the $12-13 range to the $8-9 range.
“Snapchat risks losing its ‘cool’ status with users frustrated by the redesign, which makes advertisers increasingly unlikely to put money into Snap advertising without clear ROI returns,”
Deutsche Bank’s Lloyd Walmsley said in a note to clients Wednesday. “We think Snap is a ‘show me’ stories to advertisers (and investors), and has to move fast to change the narrative, particularly given its cash burn levels.”
Cramer compared the Snap conference call to an SNL skit, calling it a “parody of a conference call.”
Not mentioned were the recent criticisms from Rihanna and Kylie Jenner who have publicly announced their exits from Snapchat usage, which alone plummeted the stock.