Snap Inc’s (NYSE:$SNAP) shares have gone down by around 1% as of 4 PM EDT on July 10, 2017. The small tumble is largely due to Credit Suisse (VTX:$CSGN) analyst Stephen Ju lowering his price target from $30 to $25 despite keeping his outperform rating on the stock. Still, Ju’s price target implies optimism for the company as Snap’s stock is looking like it could hit its 52-week low of $17 today. Ju cites his concern to be Snap’s monetization rates in the upcoming quarter.

Besides technicals and numbers, investors should also consider the company’s share lock-up expiration, Jim Cramer, founder of TheStreet and manager of the Action Alerts PLUS charitable trust portfolio, said on CNBC. About 711 million of Snap’s shares could become unlocked later in the summer; the large number of supply could impact stock price, Cramer said. As such, Cramer has advised potential investors to wait for this lock-up period to pass before investing in the social media company.

Snap’s first quarter was disappointing to many investors, and Cramer wonders if the company’s management has learned from its mistakes. Cramer is also especially worried about competition from big-name social media network companies like Facebook (NASDAQ:$FB). Cramer noted these companies tend to wipe out its competitors completely, adding that he felt bad for Snap.

The social networking has been largely dominated by Facebook for a while, and they are unlikely to give up that position easily. Snap, despite its popularity amongst users, has been struggling recently regarding profits and user growth. Its upcoming quarterly report could give investors some indicators of whether or not the company has a chance in surviving Facebook’s wrath.

 

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