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Snap Within A Penny Of IPO Price; Is It Code Red For This Social Media Platform?

Snap Within A Penny Of IPO Price; Is It Code Red For This Social Media Platform?
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Snap Inc (NYSE: SNAP) has seen significant downward pressure since reaching its early lifetime high shortly after its initial public offering on March 2.

The social media company began its run in the publicly traded stock markets at $17.00 and climbed to $29.44 in its early days. Since then, the stock has seen a large drop off culminating in Snap sitting virtually right back where it started, stooping as low as $17.01 on Friday.

Related Link: Snap Makes A New All-Time Low By A Wide Margin

On Friday’s edition of Benzinga’s PreMarket Prep, Quantum Trading Strategies Chief Information Officer Sean Udall gave his very bearish take on the future of Snap. When asked if he sees any value in the company after its big drop, Udall responded, “Not really ... I’m not even sure Snap’s worth 10 bucks a share.”

Snap's Uncertain Future

Udall then noted Snap’s surprising advantage over Twitter Inc (NYSE: TWTR) in market value, saying: “Snap’s market value is still notably higher than Twitter, and that’s completely backward. The power of Twitter. The reach of Twitter. The monetization of Twitter. I think the market cap is backward.”

Snap is yet another company to see big pops off an IPO turn into big losses in the months afterward. To Udall, however, Snap’s big losses could be catastrophic.

“I’m not sure Snap will even be around in five years. If it is, I don’t think it’s around anywhere close to its current market cap.”

How To Watch, Listen, Learn With BZ

PreMarket Prep is a daily trading ideas show with a focus on pre-market volatility and technical setups. You can listen live and chat with our hosts, guests, and listeners every morning from 8–9 a.m. ET here or on YouTube Live. You can listen to the podcast on iTunes, Soundcloud and Sticher.

Posted-In: Quantum Trading StrategiesShort Ideas Technicals Top Stories Tech Media Trading Ideas Interview Best of Benzinga


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