The Problem with Snap Inc (NYSE:SNAP)

Wall Street had highs hopes for Snap Inc (NYSE:SNAP), but the stock hasn’t impressed investors since its IPO. Snap shares have lost more than 12% since the start of the year. The company reported a loss of $2.2 billion in the first quarter. Its user growth has almost come to a standstill, amid high competition posed by Instagram and Facebook .

Advertisers are also becoming averse to Snapchat because of increasing ads costs and fewer impressions per user. Snap’s Average Revenue Per User (ARPU) is also declining. Analysts believe that due to a lot of uncertainty around Snap Inc (NYSE:SNAP)’s stock, investment in the company should be avoided.

ValueSpectrum.com News Wire & Equity Research: +31 084-0032-842
news@valuespectrum.com

Copyright analist.nl B.V.
All rights reserved. Any redistribution, duplication or archiving prohibited. analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.