Snap Inc (NYSE:SNAP) stock was down on Monday following a price cut from JPMorgan.
JPMorgan analyst Doug Anmuth lowered his price target for Snap Inc to $18. The previous price target that the analyst had for SNAP stock was $20. The stock’s closing price on Friday, June 2, 2017 was $21.06.
Anmuth’s reasons for lowering JPMorgan’s price target for Snap Inc have to do with being careful. The analyst believes that the camera company won’t bring in as much revenue off of its Spectacles smartglasses as previously expected.
The JPMorgan analyst is expecting Snap Inc to sell 429,000 units of its smartglasses for $56 million in revenue. This is a 53% decline from the previous estimate, which had SNAP selling 915,00 units for $119 million in revenue. He is also expecting the company to have trouble with ad revenue and slowing DAU growth.
The update from Anmuth also includes changes to estimated earnings for fiscal year 2017. He is expecting losses of 68 cents in fiscal 2017, 44 cents in fiscal 2018 and 13 cents in fiscal 2019. Previous estimates had SNAP reporting losses of 65 cents in fiscal 2017 and 34 cents fiscal 2018, and a gain of 11 cents in fiscal 2019, reports StreetInsider.com.
Wall Street’s estimate consensus for Snap Inc has the company reporting losses per share of 57 for fiscal 2017. Analysts are also estimating losses per share of 34 cents for fiscal 2018.
Snap Inc last released its earnings report on May 11, 2017. The company didn’t do as well as expected, with revenue coming in 5% below estimates.
SNAP stock was down 2% as of Monday morning and is down 15% year-to-date.
