"We have started choosing candidates for our annual worst CEO list, and Evan Spiegel of Snap Inc. ( NYSE: SNAP) is the next candidate. An all-time winner will be selected later in the year. Before looking at the past year, it is worth remembering that Spiegel has been chief executive of Snap since 2011. Snap shares are down 84% in the past five years, 36% in the past year, and 27% year to date. His net worth, in the meantime, is approximately $2.5 billion."
"Spiegel's single largest problem is that much of Wall Street believes that Snap's future is no better than its past. Of the 43 analysts who cover the company, 35 rate it at Hold, Sell, or Underperform. The average stock price forecast is $9.87, and shares currently trade at $7.91. The consensus estimate is that revenue will grow only 10.3% this year and that Snap will have a per-share loss of $0.33 in 2025."
"According to Salesforce.com, Snap ranks ninth at 900 million. The leader is Facebook, at 3.07 billion. WhatsApp follows with 2.78 billion. Snap's number in its third quarter announcement is slightly different, up 7% year over year to 943 million. The company has cut one significant deal this year. Perplexity's AI-powered answer engine will be integrated into Snapchat."
Evan Spiegel has led Snap since 2011 while shares have fallen 84% over five years, 36% in the past year, and 27% year to date. Revenue rose 11% in the first three quarters to $4.2 billion, yet the company posted a net loss of $104 million versus $153 million a year earlier. Monthly active users are reported near 900–943 million, placing Snap ninth among social platforms. Of 43 analysts covering the stock, 35 rate it Hold, Sell, or Underperform, with an average price target of $9.87 while shares trade near $7.91. Consensus forecasts modest revenue growth and continued per-share losses through next year. A Perplexity deal will integrate an AI answer engine into Snapchat and provide $400 million of cash and equity.
Read at 24/7 Wall St.
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