Yahoo Finance Live anchors discuss Guggenheim reiterating a Neutral rating on Snap.
BRAD SMITH: Also let's take a look at Snap. We've been tracking Snap here on the day as well. Guggenheim out with their own research, and we've been tracking shares throughout this morning. Snap September data, you're seeing the review suggest cooling usage momentum and add trend improvement here.
And the new price target that we've got for Snap is $12 a share. And they're putting a neutral rating on it. Now particularly here in the advertising space, it's going to be amazingly critical to track how much companies are pulling back some of their ad spends, especially in an environment where they're already cutting or restructuring some of their costs elsewhere. Marketing budgets are typically the ones to first get trimmed there.
And so for Snap, a company that is trying to compete with the digital ad duopoly that it has been in the digital ad market of Facebook or Meta platforms, and Alphabet's Google for years now, for Snap continuing to try and take share where you're also seeing less of the actual dollars flow into advertising is going to be amazingly critical. However, Guggenheim is saying that there's some of the improvement there that they're potentially basing this on right now.
BRIAN SOZZI: I would like to see a more definitive call on Snap, buy or sell. You should theoretically not be at a neutral at a company like that's Snap-- like Snap that's been undergoing so many challenges. But it'll be interesting to see how the market views a company like Snap, even at Meta, which is down significantly over the past year in the back half of the year.
This is a company now aggressively cutting expenses. At some point, does the market focus more on that and what it might mean to profitability or are they still just laser focused on the top line weakness? That is to be determined, but look, that is a very ugly chart on Snap.
BRAD SMITH: Yeah.