Snap (SNAP) Falls 8.2% as OpenAI Launches Short-Form Video Product

We recently published 11 Stocks Failing to Keep up With The Market. Snap Inc. (NYSE:SNAP) is one of the top performers on Tuesday.

Shares of Snap Inc. (NYSE:SNAP) declined by 8.21 percent on Tuesday to end at $7.71 apiece as investors soured on an investment firm’s conservative stance for the company, while digesting the impact of OpenAI’s new short-form video app on the company.

In a market note, Mizuho Securities gave Snap Inc. (NYSE:SNAP) a “neutral” rating with a price target of $9. The figure represented only a 7 percent upside potential from its $8.4 closing price prior to the report, and 16.7 percent from its latest closing price.

According to Mizuho, investors should exercise caution in their Snap Inc. (NYSE:SNAP) portfolios amid weak feedback from its advertising channels.

In other developments, Snap Inc. (NYSE:SNAP) also dropped after reports that OpenAI will launch an image and video generator app based on its Sora2 model.

The app is said to resemble infamous vertical video mobile app features such as TikTok, as well as Facebook, YouTube, and Instagram reels.

Meanwhile, Snap also offers its own short-form video format through its feature, Spotlight.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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