Cleveland Research analyst Kevin Rottinghaus downgraded Snap (SNAP) to Neutral from Buy on monetization concerns and increasing pressure from Facebook (FB) competition.
The analyst said Snap’s user growth is still being outpaced by Facebook’s Instagram and expects Instagram’s ad tech advantage to become more pronounced through the remainder of the year.
Rottinghaus is concerned about Snap’s potential stagnation in user growth, the lack of a viable direct response product, an under developed ad tech suite, and some advertiser disinterest.
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