advertisement
advertisement

Monday blues for Snapchat

Shares of Snap Inc. fell as much as 7% on Monday after the newly public company received mixed reviews from analysts. As CNBC reported, Snapchat’s parent company did not receive a single “buy” rating out of seven analysts who cover the stock. Snap’s IPO last week was one of the most anticipated in years, but analyst Laura Martin of Needham & Co. had this to say about tempering expectations:

“Academic literature suggests that the sexier and more glamorous a company’s IPO, the more likely it is to be overpriced at its IPO date and to suffer meaningful downwards earnings and valuation revisions in the first eight quarters after it goes public.”

Read more from Bloomberg and CNBC.CZ