One of, if not the most headlined IPO this year so far has to be Snap, Inc.
Snap announced their earnings for the first time and investors panicked. The company announced that t had missed Wall Streets already low expectations. In fact almost every metric came in lower than expected. The company lost $2.2 billion in its first quarter. They also announced that their user growth was "decelerating sharply". Analysts were quick to point out that Facebook's
Shares were lower by 21.45% in a relentless day of selling. Volume was the third highest since its IPO showing that the bulls were running for the exits. The 21% down day also pushed shares to a new low not previously seen. The lows on Thursday are important though as the IPO price was $17. Under $17 you know for a fact that every investor is in the red and could very likely see heavy selling pressure on the lockup period expiration August 29th this year.
Anyone considering buying this collapse has to have the belief that the young CEO can turn the ship and create new reasons to bring more users or at the very least bring back investors.