From Tyler Durden: 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 lows).
SNAP is now down over 23% from the exuberant highs on Friday.
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.
The firm rates the stock as a 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.
If you’re keeping track at home, that’s 5 Sells, 2 Holds, and ZERO Buys from the top analysts on Wall Street, following one of the most highly anticipated IPOs in history.
Snap Inc (NYSE:SNAP) was trading at $21.60 per share on Tuesday morning, down $2.17 (-9.13%). Year-to-date, SNAP has declined 11.97%%, versus a 6.22% rise in the benchmark S&P 500 index during the same period.
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