Despite inching towards $24 at the end of last week’s trading session, Snap Inc (NYSE:SNAP) is still trading below its post-IPO price.
Snapchat will have finished the first trading session of the week down roughly $0.90, or 4.06%, to $21.17 a share, at the time of this writing.
After trading as high as $29.44 in its first week, the stock plunged to as low as $20.64. This means that anyone who bought in just after the initial public offering will be in the red.
There is a reason why there are still no buy ratings from Wall Street firms. Remember, Snapchat has yet to make a profit, and its CEO even warned that it may never turn out a single cent in profit. Last year, the social media app lost more than $500 million.
Indeed, this is what happens when you park your money in a lottery-like stock.