This is a surprising story given how much hype has been given to Snap IPO at the start of the year, Snap Inc. stock price continues to fall(NASDAQ: SNAP). Q2 earnings let investors down reporting a second quarter non-GAAP loss of $0.16 per share after the close Thursday (source: Nasdaq).
One big problem is that Snapchat has only 174 million Daily Active Users (DAU), compare this to Facebook Instagram Stories exceeds 250 million daily active users. Users can post disappearing stories for a 24-hour period closely similar to Snapchat’s service.
Snap Map is a new feature that has big potential for the company, while Spectacles the sunglasses that also shoot video hasn’t been selling well. Recently the Snap Inc. stock price has recently plummeted going below the IPO price ($17) and has now closed as low as $11.83.
The stock lockup is recently expired, allowing early investors, employees and insiders to sell shares which has added to selling pressure on the stock. Can Snap Inc. survive this downward trend on the stock market? Is Snap Inc. going to follow the same downward spiral as Twitter? Only time will tell…
One thing that’s certain is for Snap Inc. IPO investors it’s been a bumpy and unprofitable ride to date.
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