Shares of photo- and video-sharing social network Snap (NYSE:SNAP) were hit hard on Tuesday. The stock slid as much as 10.3%. As of 3:35 p.m. EDT, however, the stock was down 7.7%.
The stock's decline likely comes both because of weakness in growth stocks (like Snap) across the broader market and an analyst's move to reiterate a sell rating for Snap shares.
Citi analyst Jason Bazinet increased his 12-month price target on Snap stock from $40 to $47 on Tuesday. However, he kept a sell rating on shares. A $47 12-month price target notably represents 14% downside from where the stock is trading at the time of this writing.
Despite the analyst's bearish view for the stock, Snap's business seems to be firing on all cylinders. The company's first-quarter revenue soared 66% year over year as daily active users increased 22%. Perhaps it was these strong results that influenced Bazinet to lift his view -- even if that view is still a bearish one.
For its second quarter of 2021, management said it expected revenue to be between $820 million and $840 million, up from $454 million in the second quarter of 2020. Management also said it expects daily active users to continue growing at a similar rate in Q2 as they were in Q1.