This is a tough week for Snap’s investors, Snap Inc. (NYSE: SNAP) fell more than 4 percent on Friday after another Wall Street bank downgraded the stock, citing concerns on the pace of monetization.
Citi Research cut its rating to neutral from buy on the social media company. This is just three months after Citi told clients to buy.
Citi analyst Mark May said the pace of grow in monetization may not be as fast as they had originally modeled. He also lowered his price target for Snap to $20 from $24.
Shares of Snap fell as much as 4.35 percent to $18.03 per share in the early trading. The stock has been down 14 percent this week.
Earlier this week, JPMorgan lowered Snapchat’s target price to $18 from $20 with a neutral rating, saying that it is worried about Snapchat’s ability to monetize its advertising business. On Wednesday, Nomura analyst Anthony DiClemente also delivered a bearish research note on Snap.
“It looks like short sellers are positioning themselves for a dramatic selloff in Snap’s stock price after the lockups expire,” DiClemente wrote in a note.
Snap’s lock-up period expired from July 31 to August 31. Analysts warned the stock may be volatile during that time as about 70% to 80% of shares become available for sale.