Snap Inc. (SNAP) - Get Report shares plunged to a record low Wednesday following a triple set of price target reductions from analysts that follow the departure of the messaging app maker's chief strategy officer.
Citigroup and Jefferies, as well as BTIG Reserach, have all issued new reports on Snap this morning, with BTIG's Richard Greenfield cutting his outlook on the stock to 'sell' with a price target of $5 a share. Jefferies has a new target of $11 while Citigroup has pegged the stock in the middle at $8 a share. The downgrades came amid a poorly-timed issue with the group's Snap Map feature, which the company said it was attempting to repair.
"We incorrectly stuck to our neutral rating in October 2017 due to our view that communications apps were sticky and would protect Snapchat engagement, with management simply needing more time to figure out monetization," said BTIG's Greenfield.
Snap shares fell 9.25% in the opening 30 minutes of trading Wednesday to change hands at $8.97 each, an all-time low that extends the stock's year-to-date decline past 40% and some 70% since the shares were floated in March of 2017.
Snap shares have been under renewed pressure this week, falling below $10 a share for the first time on Monday, after its chief strategy officer, Imran Khan, said in a regulatory filing that he was leaving the company.
"Mr. Khan has confirmed that this transition is not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, or practices (financial or otherwise)," the filing stated. Khan's last day has not been determined, the filing said.
Khan joined Snap in January 2015, and served as strategy chief throughout Snap's March 2017 public offering, which priced its stock at $17 per share. He played a critical role in steering the company's roadmap as well as selling its narrative to investors.
On Snap's most recent earnings call on August 7, Khan did most of the talking, along with CFO Tim Stone, in explaining the company's results and outlook.