Snap Shares Hit New All-Time Low

Tristan Harris

Tristan Harris

The firm now has $13.84 price objective on the stock.

Global Equities Research analyst Trip Chowdhry stamped Snap "total junk", arguing that it lacks the fundamentals to succeed. Barclays PLC reiterated a "sell" rating on shares of Snap in a research note on Friday, April 14th. They set a hold rating and a $22.00 target price on the stock.

The price of Snap Inc. shares fell as much as 15 percent to $11.69 a share in after-hours trading on Thursday, reflecting investor disappointment in Snapchat's parent company following a second-quarter earnings report showed slow user and revenue growth. Shares dropped below their IPO price of $17 for the first time on July 10, closing at $16.99. They set a "neutral" rating and a $24.00 price objective on the stock. The stock has an average rating of Hold and an average target price of $20.95.

Shares fell almost 8 percent to below $13 at one point in after-hours trading after closing at $13.77, up 21 cents on the day. The company's stock had a trading volume of 50,251,356 shares. The company's market cap is $16.21 billion.

Snap (NYSE:SNAP) last announced its earnings results on Wednesday, May 10th. The company reported ($0.16) EPS for the quarter, beating the consensus estimate of ($0.29) by $0.13.

Snap, which launched its IPO at the beginning of March this year, also revealed its revenue more-than doubled to $181.7m (£140m) in the quarter. In the first quarter, revenue declined on a sequential basis from $165.7 million in Q4 of 2016 to $149.7 million.

COPYRIGHT VIOLATION WARNING: "Snap Inc". Recall that Snap Inc.

"If you want to be a creative company, you have got to be comfortable with and basically enjoy the fact that people copy your stuff", Spiegel said on its first earnings call in May. The correct version of this news story can be viewed at https://stocknewstimes.com/2017/08/10/snap-inc-nysesnap-upgraded-to-buy-by-vetr-inc.html.

Institutional investors and hedge funds own 30.16% of the company's stock.

Market tracker Pivotal Research Group said in a note to investors that Snap showed encouraging signs when it came to advertisers spending more money, new products, and expansion outside the United States, but still expected shares to sink closer to US$9.

Snap's results came on the heels of Blue Apron Holdings Inc reporting a wider-than-expected quarterly loss, which erased almost a fifth from the meal-kit delivery service's market value. Harel Insurance Investments & Financial Services Ltd. increased its stake in shares of Snap by 654.0% in the second quarter. In the second quarter, Snap added a maps function for users to see where friends are, as well as a search section.

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