Snap Inc (NYSE:SNAP) shares can’t seem to catch a break, even after receiving a $100 million life raft from Time Warner.
The fledgling stock has plummeted from $22 to $17 over the last month. Snapchat shares did spike above $18 when Time Warner said it was striking a $100 million deal with Snapchat to make shows. Shares began to cool off soon after once again.
At the time of this writing, Snapchat shares are down $0.05, or 0.29%, to $17.26 per share.
Why is Snapchat tumbling? It’s simple: the stock had garnered so much momentum at the start, like many tech companies in this market bubble. However, wise investors realize that Snapchat isn’t generating profits – and won’t be for a long time coming – and that it doesn’t offer any real value.
Wall Street has mostly shied away from the social media company. Despite getting a few buy ratings from Wall Street firms, the tech firm has mostly received sell or neutral ratings. In a decade from now, we’ll look back at these social network behemoths as nothing more than a flash in the pan and a sign of the times a la the dot-com boom.
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