What Investors Missed in the Market This Week
The markets managed to climb their way to a higher close on Friday, but that was far from enough to offset one of the rare down weeks for stocks as tensions with North Korea escalated. In fact, the week culminated with President Trump one-upping himself, stating that perhaps his prior threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough." But putting those tensions aside, as earnings season rumbles along for investors, there are plenty of other big headlines to discuss. Here are some highlights.
It's been tough sledding for Snap Inc. (NYSE: SNAP) after its recent IPO, as the bears find it difficult to imagine how it can take on other tech and social-media juggernauts for advertising dollars. The company shed almost 15% of its value on Friday alone, after an awkward hot-mic moment Thursday night stole some of the spotlight from a dismal quarterly result. The stock has shed nearly 49% of its value over the past three months.
Just last month, Credit Suisse analyst Stephen Ju lowered his price target from $30 down to $25, with concerns that the company's growth trajectory is wildly volatile and that Snap insiders would be unloading their shares starting at the end of July, which would apply some pressure to its already declining stock price. Hitting closer to home, as Snap currently trades for roughly $11.80 per share, Morgan Stanley downgraded the company from "overweight" to "equal weight," with a new price target of $16.
Source: Fool.com