4 Signs Snap Inc. Needs New Management
Snap (NYSE: SNAP), the maker of Snapchat, recently fell below its IPO price of $17. To make matters worse, the IPO's lead underwriter Morgan Stanley (NYSE: MS) downgraded the stock from overweight to equal weight, then slashed its price target from $28 to $16.
I've warned investors about Snap before. Its slowing user growth, rapid cash burn rate, ambiguous plans for the future, and nosebleed valuations all make it a dangerous stock to own. Today, I'll examine four red flags that indicate that the company might fare better under new management.
Snapchat's mobile app. Source: Google Play.
Source: Fool.com
Morgan Stanley Stock
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