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.
Snap Inc stock price is falling. Snap has only 166 million daily users.
At the same time 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.
The Snap stock price has recently plummeted going just above the IPO price closing at $17.31. This is a surprising story given how much hype has been given to Snap stock prior to listing at the start of the year.
Should you short Snap? Or is it a buying opportunity? Comment below.
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).
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.