Naved Khan of B.Riley Financial has adopted a Hold rating on Snap, emphasizing balanced prospects due to its significant audience and cautious forecast on advertising growth.
Khan believes direct-response ads will drive Snap's growth, but the challenges from brand advertising and competitive pressures create uncertainty for the company.
With Snap's valuation at 20.1 times its estimated 2025 EV/adjusted EBITDA, Khan suggests that the stock may be fully priced, limiting upside potential.
Khan highlights potential for margin expansion and user engagement in North America as key factors for improved profitability, despite the ongoing competitive landscape.
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