Analyst Predicts Employee Turnover will Damage Snap Stock
A market analyst group has downgraded Snap Inc.’s target stock price due to worries surrounding the amount of employee turnover it has seen in recent times.
Brian Wieser is senior research analyst for Pivotal Research Group. He feels the social media company may need to give away stock to important employees as incentive to keep them.
It was revealed last month that Snap employees received stock rather than cash for their Christmas bonuses, for the second successive year.
According to Markets Insider, Wieser wrote: “Concerns we have long held around employee churn are playing out. Significant additional stock grants to key employees may be necessary despite their diluting effects.”
As a result, he dropped his rating from ‘buy’ to ‘hold’, and cut the overall target price from $8 to $6. Snap Inc. stock had been trading as low as $4.99 just before the new year.
Dominic is a reporter for Global Dating Insights. Originally from Devon, England he achieved a BA in English Language & Linguistics from The University of Reading. He enjoys a variety of sports and has a further passion for film and music.