What’s Snapping Snap Inc.

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Snapchat as a study guide.

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)

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.

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