Wedbush downgraded SNAP to "neutral"
The shares of Snap Inc (NYSE:SNAP) are down 5% to trade at $30.50 this morning, falling in tandem with the broader market after Wedbush downgraded the Snapchat parent to "neutral" from "outperform." The firm also cut its price target to $36 from $56, expressing concerns over various headwinds denting the company's revenue growth.
It seems Wedbush isn't a lone wolf in regards to hesitancy towards Snap stock, as Canaccord Genuity and Goldman Sachs also cut their price targets to $40 and $65, respectively. And there's plenty of room for the brokerage bunch to follow suit, as 17 of 21 in coverage still rate SNAP a "buy" or better, which leave ample space for additional downgrades/price-target cuts.
Options traders are focused on puts. The equity's 10-day put/call volume ratio across the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 1.06 and ranks higher than 100% of readings from the past 12 months. This shows a stronger-than-usual demand for long puts relative to calls in recent weeks.
Bouncing off the $30 level earlier today, Snap stock is trading at its lowest level since October 2020. With pressure from every notable trendline on the charts, SNAP is adding to its 44% year-over-year losses, while sporting a 36% dip in 2022.