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Snap Inc (SNAP) Stock Is Disappearing Along With Its Users

Jun 13, 2017, 2:02 pm EDT
Snap Inc (SNAP) Stock Is Disappearing Along With Its Users

According to a report from Bloomberg, Snap Inc (NYSE:SNAP) is this year’s most shorted tech initial public offering. About 28% of the float is in short positions. Source: Shutterstock

It’s true that short sellers can get things very wrong. And there is always the potential for a short squeeze. This is when short sellers are forced to buy back stock to cover their positions.

But regarding SNAP stock, there are serious fundamental issues to keep in mind. Investors got a sense of this during the company’s first quarterly report as a public company. Even though revenues soared, there was lackluster growth in the user base. Consider that the quarter-over-quarter increase was a mere 5%. Read 

Spotify Leads the Unicorns to the Public Market

Jun 9, 2017, 1:56 pm EDT

Spotify, a money-losing music streaming service, seems poised to go public on the New York Stock Exchange this fall through a “direct offering,” in which owners offer their shares to the public market rather than the company issuing new stock.

This is supposed to test the direct offering model, which hasn’t been used on a big operation since Freddie Mac went public in the late 1980s.

But it will also test the true value of unicorns, private companies with valuations of $1 billion or more. Investors, in turn, should be asking if the smart money wants out, what do they really think of their investment? Read 

Blue Apron’s Next Delivery Could Be Shares as Meal Delivery Service Files for IPO

Jun 2, 2017, 11:35 am EDT

Blue Apron Holdings, Inc. filed to go public yesterday. The meal-kit startup said that it’s grown sales to $800 million last year from under $80 in 2014. The company has raised $193.8 million in venture capital and was valued at $2 billion in 2015.

In its S-1 filing with the SEC, Blue Apron claims it delivered more than 159 million meals to homes in 48 states. The lead underwriters include Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup Inc (NYSE:C) and Barclays PLC (ADR) (NYSE:BCS), according to the filing. Read 

Snap Inc (SNAP) Stock Shoots to New Lows on First Earnings Faceplant

May 10, 2017, 5:07 pm EDT
Snap Inc (SNAP) Stock Shoots to New Lows on First Earnings Faceplant

Welcome to the public markets, Snap Inc (NYSE:SNAP). Life here can be brutal.

SNAP stock is off a grueling 25% in after-hours trading following its first earnings report as a publicly traded company, which included a miss in user growth and revenues. Should these prices hold, Snap will wake up Thursday to all-time lows.

Wednesday’s losses were exaggerated thanks to a run-up ahead of the report. Credit that to a broad tech rally that has lifted everyone from Apple Inc. (NASDAQ:AAPL) to Amazon.com, Inc. (NASDAQ:AMZN) to Netflix, Inc. (NASDAQ:NFLX). But it looks like it will take some more time for Snap to get into the same league. Read 

3 Reasons Snap Inc (SNAP) Stock Might Crack After Earnings

May 9, 2017, 10:16 am EDT

Snap Inc (NYSE:SNAP) will report is first quarterly results as a public company tomorrow. No doubt, there is quite a bit riding on this for SNAP stock. Source: Snap

Let’s face it, Snap Inc has been quite volatile since the company pulled off its IPO in early March. While the shares got off to a strong start, they have since trailed off. Consider that the range has been $18.90 to $29.44.

This compares to the IPO offering price of $17. Read 

Snap Inc (SNAP) Stock: This Is Your Reality Check

May 1, 2017, 11:35 am EDT
Snap Inc (SNAP) Stock: This Is Your Reality Check

Kudos to Snap Inc (NYSE:SNAP) CEO Evan Spiegel. Not only are you running a company worth $26 billion at the ripe old age of only 26, but you’ve also managed to rattle the cage of much bigger rivals like Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR). Source: Maurizio Pesce Via Flickr

Too many kids your same age are trying to wrap up their seventh year of undergraduate studies, and too many executives twice your age are still trying to figure out how to make an app that’s a tenth as popular as your Snapchat has been.

On the other hand — and this can be considered a warning to current and prospective owners of SNAP stock — you’re taking yourself and what Snapchat is way too seriously. That poses a big risk, as it can blind you to the seemingly-insignificant details that can end up ruining your company. Read 

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