Snap Stock Continues to Spiral After Bear Note

Canaccord Genuity and Goldman Sachs also slashed their price targets

Deputy Editor
Jan 24, 2022 at 10:08 AM
facebook twitter linkedin

The shares of Snap Inc (NYSE:SNAP) are down 5% to trade at $30.50 this morning, falling in tandem with the broader market after Wedbush downgraded the Snapchat parent to "neutral" from "outperform." The firm also cut its price target to $36 from $56, expressing concerns over various headwinds denting the company's revenue growth. 

It seems Wedbush isn't a lone wolf in regards to hesitancy towards Snap stock, as Canaccord Genuity and Goldman Sachs also cut their price targets to $40 and $65, respectively. And there's plenty of room for the brokerage bunch to follow suit, as 17 of 21 in coverage still rate SNAP a "buy" or better, which leave ample space for additional downgrades/price-target cuts.

Options traders are focused on puts. The equity's 10-day put/call volume ratio across the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 1.06 and ranks higher than 100% of readings from the past 12 months. This shows a stronger-than-usual demand for long puts relative to calls in recent weeks.

Bouncing off the $30 level earlier today, Snap stock is trading at its lowest level since October 2020. With pressure from every notable trendline on the charts, SNAP is adding to its 44% year-over-year losses, while sporting a 36% dip in 2022.



Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners