SNAP's revenue miss is the canary in Facebook's coalmine

$Meta Platforms (FB.US)$ We see the $Snap Inc (SNAP.US)$'s Q3 revenue miss as disconcerting given the higher-than-expected impact from iOS upgrades. SNAP also called out supply chain disruptions and labour shortages as potential headwinds heading into Q4 2021 which resulted in 13% lower guidance vs our Q4 estimates. We see little reason for these headwinds not to impinge on Facebook and have reduced our EPS estimates for the rest of 2021 and 2022 by 5% and 11% respectively. However, we see these headwinds as ephemeral in nature and with stock trading at 17x NTM PE on 2023E EPS, see it as an attractive entry point for investors to gain exposure to the largest social media platform. "Reiterate Buy" with a 12-month price target of $412, imputing an upside of 27%.