Snap Tumbles for First Time Since IPO After Analysts Say Sell
- Of seven analysts who cover the stock, none recommend buying
- More glamorous the IPO, more likely for big fall, Needham says
Snap Fizzles as Shares Take a Beating for Second Day
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After a euphoric market debut, Snap Inc. shares dropped for the first time in three days and fell below the opening price of $24 on their first day of public trading after analysts began weighing in with their thoughts on the company’s true valuation.
The parent company of disappearing-photo app maker Snapchat priced shares in its initial public offering last Wednesday and they surged 44 percent on the first day of trading. On Friday the stock climbed a further 11 percent. By Monday, five of the seven analysts who cover the company had a sell rating on it while two said hold.