Snap Chat’s Stock down 11 Percent, Stock Market eating stock for lunch
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Snap, the parent company of social media platform SnapChat saw its stock take a hell of a tumble since becoming public last Thursday – going down as much as 11% after a massive rally.
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When the stock went public, it received a very warm welcome by the stock market, going up as much as 44% on its first day and then another 10% on the second.
But the excitement started to fade Monday as some analysts questioned the company’s growth potential.
Analysts at Needham initiated coverage of the social media firm’s stock with an “underperform” rating, noting the company’s total addressable market is 80 percent smaller than Facebook.
“Prospect Theory would label SNAP a ‘lottery-like’ stock,” they said in a note Monday.
The stock dropped more than 10 percent Monday and closed below its opening trade price from Thursday.
Chart Source: Factset / CNBC.com
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