Snapchat is tanking for the first time since its IPO
Snap Inc. is having its first down day in the stock market since going public on Thursday March 2.
Shares of the parent company of Snapchat fell 5% in early trading on Monday to as low as $25.87. They were about 18% lower than the post-initial public offering high.
It's still very early days for the stock, which may test early investors' patience if it quickly falls below the IPO price of $24 per share, effectively erasing their gains.
Even though there was huge demand for its shares, making it the largest tech IPO since Alibaba in 2014, none of the seven analysts who cover Snap rate it a "Buy." Analysts who advise investors to sell are warning about strong competition from Facebook and Twitter, and slow user growth.
Over the weekend, Barron's magazine said the company's shares could be cut in half.
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