![]() ![]() It has been a difficult season for social media companies in general, but Snap’s declines far outpace peers like Meta Platforms (NASDAQ: META ) and Twitter (NYSE: TWTR). Credit Suisse analyst Stephen Ju lowered his target to $35 following the Q2 report. Even their highest price target - $35 per share - isn’t high enough for shares to reach the proposed split price. Now, 22 analysts on TipRanks rate SNAP stock as a “hold” while 10 analysts maintain “buy” ratings. Per InvestorPlace contributor Larry Ramer, revenue came in below estimates in Q2, among other disappointments. How bad did Wall Street find Snap’s second-quarter earnings report? Bad enough for 14 analysts to downgrade their SNAP stock price targets. Since then, the stock has only fallen further. When news of the intended split first broke last week, Barron’s reported that SNAP stock rose “as high as $83.34 in the past 12 months” but had fallen 30% on disappointing earnings. Other companies that have recently enacted splits - or are planning to - have opted to create much larger payouts both Amazon (NASDAQ: AMZN) and Alphabet enacted 20-for-1 stock splits. The company is only proposing a 2-for-1 stock split, meaning investors will only be awarded one more share for every share they own. But that isn’t the only strange thing about Snap’s plan of action. It’s definitely unusual to propose a stock split that hangs on whether or not shares can surge 300%. ![]()
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