A large dark pool sell order occurred in $SNAP stock on October 20, 2022, which caused a HUGE -27% panic sell-off.
Dark Pool Trading In $SNAP Stock
The $4.3 million dark pool trade occurred below the bid meaning a deep pocket institutional investor wanted out of $SNAP stock quickly and was willing to sacrifice price for speed of execution.
Make sure to review this lesson on option flow so that you understand the image above.
Snap price target lowered to $9 from $12 at Piper Sandler
On October 20, 2022, Piper Sandler analyst Thomas Champion lowered the firm’s price target on Snap to $9 from $12 and kept a Neutral rating on the shares. The company’s Q3 revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... was in-line while EBITDA but management’s internal targets for Q4 suggest a significant deterioration in advertiser demand.
Snap says advertising partners decreasing their marketing budgets
On October 20, 2022, in its Q3 investor letter, the company said, “Our revenue growth continued to decelerate in Q3 and continues to be impacted by a number of factors we have noted throughout the past year, including platform policy changes, macroeconomic headwinds, and increased competition. We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital. In some industries where topline growth remains strong, but businesses are experiencing input cost pressure due to inflation, we have observed reduced campaign budgets as businesses seek to offset input cost pressures. In many high growth sectors, businesses are reassessing investment levels amid the rising cost of capital. We experience this on our advertising platform in the form of decreased brand-oriented advertising spending, but also in the form of lower bids per action and lower overall campaign budgets.”
Snap must solve its monetization problem to solve its revenue problem, says Loup’s Gene Munster
Snap Stock Technical Analysis
SNAP stock is in a technical strong downtrend. Long-term indicators support a continuation of the trend. Folks, SNAP may ultimately go out of business or be sold off to another big tech firm.