Snap: Flat User Trends And Updated Reporting Metrics Are Concerning (Downgrade)

Snap faces declining momentum, with user growth stagnating, especially in its core U.S. market. I downgrade SNAP to a "Sell" rating due to unsustainable profit growth and lack of compelling forward drivers. Q3 earnings miss triggered a ~10% share drop, erasing prior modest gains and deepening YTD losses to over 30%.