--> SNAP -4.20% pre open 340k shares already traded at 16.39 average
Snap: Weaker June usage; Spectacles going the way of Google Glass? -- Aegis Capital
Aegis notes that in following up with their last note on Snap, "Lukewarm Ad Checks. Trimming Estimates; DAUs Ok; Reducing Price Target To $19", they now see weaker June usage trends and believe that Spectacles are not selling well, both of which are likely to exert downward pressure on ests. On a positive note, they understand that recent product updates are resonating with users, particularly, the Maps and World Lenses features, and that could help with engagement in 3Q17 and beyond. Despite a weaker June, firm continues to believe that Snap is likely to meet their 174M DAU estimate (+8M) for 2Q17, for DAU growth of 22% YoY vs. 36% in 1Q17. However, risks are now to the downside. Firm queried a number of millennial users (<30) about Spectacles and came back with two observations: 1) none had purchased the glasses or know of anyone who did; and 2) when out at beaches, amusement parks, and parties over the July 4th holidays, none had seen anyone with Spectacles; Hold.