Snap Inc. SNAP, -7.18% shares are down 3.7% in Monday morning trading after the company confirmed in a filing late last week that it had cut 7% of its workforce. Snap said that it expected to save about $25 million in 2018 related to salaries and payroll taxes. SunTrust Robinson Humphrey analyst Youssef Squali wrote Monday that Snap's filing "reveals more about its intent to accelerate profitability." He cited a March report from The Information, which said that Snap CEO Evan Spiegel had sent an email to employees saying that he wanted the company to break even in 2018, after it reported steep losses in 2017. Squali wrote: "We are not yet convinced that this goal is attainable in such a short period of time, as product innovation and revenue growth are still the key, in our view, to attaining this goal on a sustainable basis," though he sees the latest job cuts as "incremental positives" toward that profitability target. "While financial discipline is important, it cannot come at the expense of innovation, especially for a company that is facing existential competitive threats from Instagram and its parent company, Facebook FB, -1.99% " Squali added. He has a hold rating on the stock and a $15 target price. Shares of Snap are down 30% over the past 12 months, while the S&P 500 SPX, -1.18% is up 11%.