Yahoo Finance Today’s Research Reports on Stocks to Watch: Facebook and Snap
NEW YORK, NY / ACCESSWIRE / January 15, 2018 / Snap shares slipped on Friday after another analyst downgraded the stock citing concerns over the company's new redesign on its Snapchat app. Shares of Facebook also tumbled after the company's CEO revealed changes that could decrease engagement.
RDI Initiates Coverage on:
Snap Inc.
http://www.rdinvesting.com/report/?ticker=SNAP
Facebook, Inc.
http://www.rdinvesting.com/report/?ticker=FB
Snap Inc. shares closed down 3.36% on about 21 million shares traded on Friday. It was a downgrade from Raymond James that sent shares of the stock lower. Analyst Aaron Kessler wrote in a note to clients, "Recent data points released this week indicate solid engagement on chats and Snaps, though engagement is much more limited for other activities. Historically, chat/messaging apps have been difficult to monetize." According to Kessler, users are less likely to view the content now that is not in the same place as content from their friends. He also argued that the people who use Snap most often are teenagers who represent a lower income demographic which is not as attractive for advertisers. Cowen recently showed that ad buyers are more likely to buy ads on Instagram instead. The analyst downgraded Snap shares to "underperform."
Access RDI's Snap Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=SNAP
Facebook, Inc. shares closed down 4.47% on about 77.5 million shares traded this past Friday. Trading volume was more than four times higher compared to usual after CEO Mark Zuckerberg revealed that some changes to the newsfeed that could lower measures of engagement on the social media site. Zuckerberg wrote in a post that, "I'm changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions." He continued, "I expect the time people spend on Facebook and some measures of engagement will go down. But I also expect the time you do spend on Facebook will be more valuable." Traders seemed focused on the word decline and the idea of less advertising which resulted in shares of the stock tumbling as a result.
Access RDI's Facebook, Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=FB
Our Actionable Research on Snap Inc. (NYSE: SNAP) and Facebook, Inc. (NASDAQ: FB) can be downloaded free of charge at Research Driven Investing.
Research Driven Investing
We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.
RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.
Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
CONTACT
For any questions, inquiries, or comments reach out to us directly at:
Address:
Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011
Email:
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: RDInvesting.com
