Can An Ailing Snap Pull Off A Twitter-Like Turnaround?
Summary
With Snap stock down about 49% since the company reported second-quarter results two months ago, a Wall Street analyst on Thursday slashed his price target on shares but reiterated a buy rating on hopes of a turnaround similar to what Twitter ( TWTR ) achieved."While we clearly have been wrong on Snaps ability to execute, we continue to believe that a Twitter-like turnaround is possible, particularly as its new Android app comes out later this quarter," Terry wrote in a research note to clients.Terry noted that, from mid-2015 through the end of 2017, Twitter saw significant management turnover, declining user growth and monetization issues."We believe the risk/reward (returns) at these levels are attractive though we expect most investors will wait for evidence of positive user growth before re-engaging," he wrote.Platforms like Instagram will continue to present a significant competitive risk to Snaps user base, Terry wrote.