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.
- Earnings recently underperformed
- 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)
Read about the ROVIO IPO here
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.