Guggenheim Restates Neutral Rating on Snap (SNAP) as User Growth Trends Slow in Q3

Snap Inc. (NYSE:SNAP) ranks among the best communication services stocks to buy now. On September 3, Guggenheim restated its Neutral rating on Snap Inc. (NYSE:SNAP) after reviewing the company’s third-quarter user metrics, which show declining growth trends.

According to the firm’s research of Snap’s Ads Manager audience reach data, the company’s global audience has grown by 2.3% so far in the third quarter, which was lower than the 3.9% growth in the second quarter.

Guggenheim states that Snap’s third-quarter daily active users (DAUs) are expected to reach 476 million, which would represent a 7.4% rise and net additions of 7 million users. This forecast represents a decline compared to the second quarter’s 8.6% increase.

The firm anticipates that the Rest of World markets, which are expected to acquire 6 million users in the third quarter, will be the main driver of Snap’s user growth.

Snap Inc. (NYSE:SNAP) is a technology company that manages one of the most popular social media platforms, Snapchat.

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Disclosure: None. This article is originally published at Insider Monkey.