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Snap Slips Below IPO Price Amid Doubts Over Future Growth

  • Tech shares slide in past month as high valuations questioned
  • Snapchat parent was the most-shorted of 2017’s tech IPO stocks
Bloomberg business news

Snap Shares Fall Below IPO Price Amid Doubts Over Growth

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Snap Inc. shares fell below their initial public offering price for the first time amid questions about the company’s ability to grow as fast as initially expected and after recent declines in technology stocks worldwide.

The stock closed down 1.1 percent at $16.99 in New York Monday, below the $17 IPO price set on March 1 and having earlier slipped as low as $16.95. To regain value, the company will need to prove that its advertisements are a must-buy, not just an experiment, and will need to keep innovating on its product as Facebook Inc. copies its most popular features, analysts have said.