March 6, 2017

Snap Inc (NYSE:SNAP) Shares Slumped 12% Reversing The Friday’s Gains

Snap Inc (NYSE:SNAP) is the parent of Snapchat. Snapchat is an app popular with young people, for its disappearing messages. In some recent days stock is facing downward sentiment, and in this context the analyst Laura Martin at Needham has rated SNAP stock as “underperform” and compared its stock to buying a lottery ticket.

As per the data of Thomson Reuters, 6 analysts have initiated coverage of Snap, among which 4 recommend selling, while two have neutral ratings, and none have “buy” ratings.

On Monday, Snap Inc (NYSE:SNAP) shares slumped 12% and closed at their lowest level of the three sessions. Last Thursday, in its market debut, shares of Snap surged 44% from its $17 IPO price to close at $24.48.

On Monday SNAP stock reversed the course of Jumping as it gained 11% on Friday, and fell 12.25% to close at $23.77 on Monday.

Technical Stock Analysis

Shares outstanding are recorded as 1045.77 and total shares floated are 200.00. Current ratio which is the relationship between current assets and current liabilities, indicating the liquidity of a business is calculated as 1.00. Company’s distance from 20 day simple moving average is -7.81% and distance from 50-Day simple moving average is -7.81%.

On last Thursday,  the $3.4-billion listing of Snap Inc (NYSE:SNAP) was the hottest technology offering in three years, but the  lofty valuation of the loss-making company and the constant slowing user growth, have raised eyebrows on Wall Street.

“It’s not necessarily because there’s something wrong with it. It’s because it probably moved way too far, way too fast,” said Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York.

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