Snap Inc. (NYSE: SNAP) is scheduled to release its most recent quarterly results after the markets close on Tuesday. While millennials may be enthralled with this platform, this hasn’t been enough for Snap to break its slump. Considering Facebook is coming after Snap now too, this photo-sharing service needs to get it together soon.
Excluding Tuesday’s move, Snap has vastly underperformed the broad markets, with the stock down about 40% year to date. Most of this has come in the past six months, with the stock 36% in this time.
This company has pulled out all the stops trying to stop its stock’s steady decline. After the initial public offering, shares nearly reached $30 per share, but now they’re about half of that. To say that this social media company’s shares are struggling might be an understatement. However, with this new partnership Snap is looking to pull in some more ad revenue.
Snap recently announced that Jebbit, an innovative mobile experience and declared data platform, is now an official partner. According to Snap, Jebbit brings the flexibility of a mobile-first experience, combined with robust declared data storage and activation. Jebbit’s technology will add to Snapchat’s marketing solutions by providing a mobile-first content experience that captures declared data directly from consumers.
It doesn’t help that Snap has faced increased competition from Facebook’s Instagram, cramping the space. Instagram now claims 800 million monthly active users, according to a report in the New York Post. When Snapchat last presented results, it reported 173 million monthly active users.
It gets worse. Instagram’s stories feature now claims 250 million monthly users, about 45% bigger than all Snapchat’s users. Facebook executive Carolyn Everson also told the Advertising Week conference in New York that Instagram now has more than 500 million daily users.
In terms of Snapchat’s third-quarter earnings, the consensus estimates from Thomson Reuters call for a net loss of $0.15 per share and $239.45 million in revenue.
Here’s what a few analysts are saying ahead of the earnings report:
- Wedbush has a Hold rating with a $12 price target.
- SunTrust has a Sell rating with a $10 price target.
- Piper Jaffray has a Hold rating.
- Credit Suisse has an Outperform rating and a $20 price target.
- Needham has an Underperform rating.
- Drexel Hamilton has a Buy rating with a $30 price target.
- Canaccord Genuity has a Hold rating with a $15 price target.
Shares of Snap were last seen up about 2.5% at $15.19, with a consensus analyst price target of $14.78 and a 52-week range of $11.28 to $29.44.