Snap shares drop 4 percent, fall below $20 for the first time | Reuters

By Noel Randewich | SAN FRANCISCO SAN FRANCISCO Snap Inc (SNAP.N) shares tumbled below $20 on Thursday for the first time since the company's $3.4 billion public listing after the Snapchat owner received another 'sell' rating from an analyst.For graphic on Snap Inc. since its IPO, click - here The social media company this month pulled off the hottest technology offering in three years, but after two days of explosive gains its stock has steadily retreated from a peak of more than $29 as investors worry about Snap's high valuation and lack of profitability

Reuters March 17, 2017 02:17:48 IST
Snap shares drop 4 percent, fall below $20 for the first time
| Reuters

Snap shares drop 4 percent fall below 20 for the first time
 Reuters

By Noel Randewich
| SAN FRANCISCO

SAN FRANCISCO Snap Inc (SNAP.N) shares tumbled below $20 on Thursday for the first time since the company's $3.4 billion public listing after the Snapchat owner received another "sell" rating from an analyst.For graphic on Snap Inc. since its IPO, click - here The social media company this month pulled off the hottest technology offering in three years, but after two days of explosive gains its stock has steadily retreated from a peak of more than $29 as investors worry about Snap's high valuation and lack of profitability.

Snap was down 4 percent at $19.92 in afternoon trade.MoffettNathanson analyst Michael Nathanson on Thursday launched coverage of Snap with a "sell" rating, warning in a note that "the market has priced SNAP for perfection."

Others on Wall Street have flagged Snap's slowing user growth, widening losses and lack of voting rights for outside investors. Snap has warned it may never be profitable.

Including Nathanson, six analysts recommend selling shares of Snap, while three have neutral ratings and none recommend buying, according to Thomson Reuters data.The stock remains up 17 percent from its $17 IPO price set on March 1. (Reporting by Noel Randewich; Editing by Meredith Mazzilli)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.