Well that escalated quickly…
As short-selling begins (T+3 borrow availability opens up), Snap Inc’s shares are extending losses from yesterday, tumbling below the post-IPO open (and ows) and now down over 23% from the exuberant highs on Friday.
More disapointed Millennials.
And as a reminder, Barron’s bashed the stock over the weekend, following Pivotal’s initial “sell” rating and Needham analyst Laura Martin writes in a note today that Snap is a “lottery-like” stock, and while lottery tickets sometimes pay off, risks for Snap include a total addressable market that’s 80% smaller than Facebook’s and no clear path to profitability before 2020. Rates new underperform, with share value of $19-$23; says share price should decline based on FB and Google EV/sales ratios. Other negatives include competitors replicating Snap’s best ideas and margin trajectory.
5 Sells, 2 Holds, and ZERO Buys…
