The stock price of the disappearing photo app maker Snap, is beginning its’ own disappearing act. The opening price for Snap was $24, and the euphoric fanatics (losers, literally) who bought it at the opening, are down 20% in 11 days. So the opening price “investor’s” accounts are also disappearing. The always late to the party analysts on Wall Street are now rating the stock as a sell. And the always honest and accurate analysts at the big banks who underwrote the disappearing app maker’s IPO, are themselves disappearing, after hyping the stock to the public. Now if we could only make the Fed disappear so easily, then we’d really have something to get bullish about.
The hottest public stock offering in years is cooling off quite quickly.
Snap, the maker of a disappearing photo app, dropped below $20 a share for the first time ever on Thursday, the latest sign of waning demand for the company’s shares. The stock, which dropped to as low as $19.80, is on pace to be down for its seventh day out of 11 since it began trading on March 2.
It’s a sharp fall from the $24 per share at which the stock opened on the New York Stock Exchange, which means that investors who bought shares when they began trading in the open market are now sitting on paper losses. The big investors who bought at the initial public offering price of $17 per share are still in the green.
The big banks that led the IPO underwriting haven’t yet weighed in, and many expect them to issue more optimistic outlooks. But at this juncture, Snap is starting to look like other hot tech companies that were brought to market with a lot of hype, only to see their stock prices crater.
Global Equities Research analyst Trip Chowdhry earlier this month compared Snap to companies like GoPro, Twitter Inc., and Fitbit, all of which saw post-IPO drops.
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