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Snap Loses Wall Street Fan Base as ‘Cash Bonfire’ Rages On

  • Stock suffers 14 downgrades after second-quarter earnings miss
  • Selloff pushes stock to below its 2017 IPO price of $17
    

    

Photographer: Gabby Jones/Bloomberg
Updated on

Snap Inc. finds itself increasingly abandoned by Wall Street, with more than a dozen brokerages downgrading the social media company’s stock in the wake of disappointing sales figures that sent shares into a tailspin. 

At least 14 brokerages and investment banks including Evercore ISI, KeyBanc and Oppenheimer, downgraded their recommendations and price targets since late Thursday, when Snap reported second-quarter revenue that missed estimates and held back guidance for the third quarter. Morgan Stanley on Monday went as far as slapping the stock with a double downgrade, adding fuel to a selloff that has seen shares fall nearly 80% so far this year.