Shares of Snap Inc. [s:SNAP] were falling 2% Monday after the stock's price target was cut to $18 from $20 at J.P. Morgan. The analysts lowered their price target because they see Snap's ad business decelerating in the third quarter, due to seasonality. Overall, they believe Snap will have a slower-than-expected pace of scaling its ad platform as its new products, such as self-serve Snap ads, will take some time to gain adoption. The analysts cut the estimated number of daily active user additions to 8 million from 10 million for the second half of the year in part because of competition from Facebook Inc . The analysts also point to Snap's lock-up expiration of about 70% to 80% of Snap shares, coming in late July, which could hurt Snap shares before the lockup and after. Finally, the analysts expect a softer outlook for Spectacles -- an area of business that they note the Street likely doesn't include in their models -- with an expectation of 429,000 units sold and $56 million in revenue in 2017. The analysts reiterated a neutral rating on the stock. Shares of Snap have fallen 10.5% in the past month, while the S&P 500 has gained 1.6%.
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