Snap is an ‘attractive candidate to go private’ if management can’t reverse its usage trends, analyst says (SNAP) – Finance

Click The stock rose by as much as 8.5% on Friday after receiving the update at Pivotal Research, which stated that the company is “an attractive candidate for private” if its management cannot change current usage trends.

“Our approach is that it’s not too late for management to find ways to change recent usage trends and, as a rule, improve monetization regardless of these usage trends,” said Pivotal Research analyst Brian Vizer in a note sent out to customers on Friday.

"If they cannot do this in the near future, the company may become an attractive candidate to go private with the price of shares at current levels."

This year Snap’s stock got hit plunging more than 60% since February – after the infamous tweet by Kylie Jenner explosion protection application design SnapchatSince then, the sale has been destroyed. $ 13 billion Market value.

A redesign that was unpopular among users led to another problem – decreasing user base. The company said in its second quarter issueOn August 7, that he suffered the first decline in consecutive daily active users. Shares fell by more than 45% since these results were announced.

The application developer is constantly introducing new features, but was unable to raise promotions.

Last month, Snap introduced new feature called Visual search, which the Allows users to point the camera apps on shoes, jackets and other products to find them on Amazon and buy them. That day, stocks fell 2%.

Similarly, stocks fell 4% when Snap entered two new styles Points for points,

And on Wednesday, Snap launched its new scripts, called "Snap Originals", but stocks fell by more than 3% to a record low of $ 6.45 apiece.

But Pivotal Research says that all negative news is now being evaluated, and stocks are set to rebound. This forced the firm to upgrade Snap to "Buy" from "hold". However, the firm lowered its price target from 9 to 8 – 12% higher when stocks are currently being traded.

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