Why Snap Inc. Stock Could Crash 50% or More
Struggling social media company Snap Inc. (NYSE: SNAP) received an analyst upgrade on Tuesday, the first after a string of downgrades. Barclays believes that Snap is reaching a turning point, and that the company "may start hitting or exceeding consensus revenue estimates and accelerating growth in 2018." Barclays raised its price target on the stock to $18, a level not seen since July.
An analyst from Evercore ISI also weighed in on Snap on Tuesday. The firm rated the stock "underperform" and slapped on a $7 price target, more than 50% lower than the current stock price. Shares of Snap are already down about 45% from their post-IPO peak, so this rock-bottom price target represents quite a bit of pessimism.
If you've read anything I've written about Snap, you know that I'm not a fan of the company or the stock. Growth is slowing, losses are astronomical, every major Snapchat feature is being copied wholesale, and the valuation is ludicrous. The stock could absolutely crash another 50%, and it's not hard to see why.
Source: Fool.com
