UPDATE: Snap Inc (SNAP) Ad Recession Becomes a Reality, PT to $30 at BofA Securities

BofA Securities analyst Justin Post lowered the price target on Snap Inc (NYSE: SNAP) to $30.00 (from $50.00) after the company warned that 2Q revenues and EBITDA would miss the lower end of guidance. Shares sold off ~30% because the filing and subsequent commentary was vague on drivers of the slowdown, beyond "macroeconomic factors" and represented a big surprise since management provided a 2Q outlook just a month ago. Essentially implying that the much greater than expected deceleration in y/y growth is a new phenomenon and since no company specific reason for the miss is offered, it could impact a much larger range of companies who's management teams have not disclosed the concerns yet.

The analyst reiterated a Buy rating, stating "While Snap had unusually strong growth in 2Q last year, the deceleration in y/y growth from around 30% in April to possibly sub-15% in May will be an overhang for GOOG, FB and PINS. Comps ease going forward, and June could stabilize, but we expect a sentiment overhang on the Internet group until 2Q earnings in July."

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