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What’s Snapping Snap Inc.

It’s fair to say that shares of Snap Inc (NYSE:SNAP)have underperformed investors expectations since the IPO at the start of the year. . . Shares of the Snapchat owner are down by nearly 45% from its IPO price. That’s got to hurt!

But what’s snapping Snap Inc? 

There are two main arguments for Snap Inc’s decline.

  1. Earnings recently underperformed
  2. Competition blame social media giant, Facebook Inc, and Instagram.

But beyond revenue misses the slowing user growth has also been a drag on the stock price. Snapchat added just 7 million Daily Active Users (DAUs) during the previous quarter, significantly lower than expectations (Source: amigobulls)

Snapchat is more popular with teenagers and this is seen as a positive for investors. Is it time to buy Snap Inc ? Comment below & share. Thanks.

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Stock Picks for 2017

Buying an IPO (Initial Public Offering) is a tough choice for investors to make. An IPO is when a private company decides to list on a public stock exchange, like Snap Inc deciding to list on the NYSE at the start of 2017. One reason that 2017 IPOs are risky is because the companies that are going public are investing for growth and may not be profitable (yet).

Nine tech companies have already gone public in 2017:  Alteryx, Carvana, Cloudera, Elevate Credit, Mulesoft, Netshoes, Okta, Snap and Yext (Source: TechCrunch).

The biggest IPO of 2017 is Snap Inc ($15.14), the social media app that is locked in a battle for users with Instagram Stories. If you invested in the Snap IPO you probably lost  money because the stock currently is valued at below  the IPO price of $17

Recently Blue Apron ($6.65) completed it’s IPO at $10, the meal delivery service has recently closed below it’s IPO price too. Another cautionary tale for IPO investors.

Rumour has it that another tech stock is planning it’s IPO in 2017: Dropbox. The company is a data sharing business, and it could be the biggest U.S. technology company to go public since Snap Inc. Dropbox will begin interviewing investment banks in the coming weeks, according to sources(source: Fortune).

While investing in an IPO has it’s own risks, if you like the company enough and believe in their story for growth they present an interesting proposition.

Don’t Forget to Share & Like:)  Thanks

Disclaimer: This is not financial advice. See our disclaimer page.

Comment below if you will or have invested in a 2017 IPO?

 

 

 

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Snapchat Stock Soars $3.4 Billion

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Snap Inc the owner of the ever popular social media app Snapchat.

Made popular because of it’s disappearing messages has successfully completed it’s IPO  on the  New York Stock Exchange,  under stock ticker symbol—yes, you guessed it—”SNAP.”

The company raised $3.4 billion. Shares of the messaging app company closed at $27.09 on Friday, well above its IPO price of $17 per share set on Wednesday.

While Snap is a fast growing social media company, similar to the success story of  Facebook  which started in a Harvard dorm room in 2004. Evan Spiegel is the 26 year old CEO of Snap and a former Stanford student, he turned down an offer from Facebook to buy Snap for a reported $4 billion dollars a few years ago.  (source:Bloomberg).

Instagram logo
The success of Instagram Stories is hurting Snapchat.

Snap Inc. could be the next Facebook . . . But risks remain for investors. The major issue is that the daily active users have declined rapidly, from a peak of 21 million in the second quarter and 10 million in the third quarter, to 5 million in the fourth quarter in 2016 (source: Recode), the company is not profitable.

Will you buy Snap stock? Comment below.

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