Glonghui, Feb. 7 | Morgan Stanley released a report saying that social media company Snap's fourth quarter performance last year fell short of market expectations, with revenue rising 5% year-on-year, which is lower than the bank's expected 9% increase. Revenue guidance for the first quarter reflects an annual increase of 11% to 15%, which is also lower than the bank's forecast of 16.5%. Results show that the platform is still in a transition period, and reversing losses in the advertising business is still challenging. Improvements in advertising businesses such as rival Meta have also made Snap have an urgent need to improve its business performance, lowering its target price from $13 to $11, and maintaining a “downside” rating. According to the bank, the company's average daily active users in North America decreased by 1 million on a quarterly basis, the first decline since 2018, and the time spent by North American users remained flat year on year. Considering that Meta in the same industry has a huge user base, and that Meta users spend significantly more time, Snap's business trends are challenging.