However, it's not all negative, TheStreet's Jim Cramer pointed out on CNBC's "Mad Dash" segment. Although the analyst did say that revenue estimates for the fourth quarter and 2018 appear "overly optimistic," they maintained their hold rating and $13 price target.
The target suggests about 6.5% downside from current levels.
But that's better than a downgrade and a lower price target. Further, the analysts cite stronger user engagement in their survey, although ad checks were still mixed, Cramer acknowledged.
However, there's a scarcity value to Snapchat's platform, he reasoned. There aren't that many social media properties that advertisers can choose from. Of course, there's Facebook (FB) - Get Report and Instagram, as well as Twitter (TWTR) - Get Report . But it's hard to leave Snapchat out of the mix as well.
"Everyone wants to be constructive on Snap, but they don't have enough facts," said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
The simple fact of the matter is that Snap stock has "been such a disappointment," Cramer said. Further, too many people still consider it overvalued. They want to like it, but without ad growth, they won't.
Snap closed at $14.17, up 0.93% after reversing from losses earlier in the session.
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB.