Snap stock plunges after analyst downgrade

Snap (SNAP.US) stock tanked more than 6.0% after Cowen downgraded the social media company to “market perform” from “outperform”, due to lingering concerns over Apple’s privacy rules which negatively impact advertising revenue. The recent changes made it more difficult for advertisers to deliver personalized ads and measure ad interactions for additional targeting. Cowen analyst John Blackledge slashed his price target on Snap to $45.00, from $75.00.

Snap (SNAP.US) stock launched today's session with a bearish price gap and is currently approaching the lower limit of the descending channel which is strengthened by 61.8% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, downward move may accelerate toward next support at $25.45 which is marked with 78.6% retracement. On the other hand, if buyers manage to halt declines, then another upward impulse toward the upper limit of the channel may be launched. Source: xStation5