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: Mar 17, 2017 02:17 AM

Also Watch

It's A Wrap: Omerta star Rajkummar Rao in conversation with Parul Sharma
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Thursday, April 19, 2018 Watch: National-level skater and coach Dhwanit Rele trains and nurtures budding athletes
  • Monday, May 14, 2018 FOMO Episode 1: Google Assistant, This is America, Sonam's wedding & Global Warming
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See