News

Snap sinks to its IPO price for the first time

On Thursday, the shares of Snap dropped by 4.9 percent in a show of loss of confidence by investors. The 4.9 percentage drop in the share price saw it go back to the price it had at its initial public offering. With fierce competition from the likes of Facebook, Snap seems to be losing the war of the social networks as seen from the drop in the share price.

Snap is the parent company of Snapchat which is popular among users below the age of 30. Snapchat has taken a different perspective on social networks with its videos and pictures that disappear after a given period of time. On Thursday, the share price of Snap tested the $17.00 mark which was its price at its initial public offering back in March.

While the price did not go below the IPO mark of $17.00, it was the lowest since the IPO. Immediately after the IPO, the price spiked to a high of $29.44 and stayed there for a few days afterward. However, the price began dropping to the low of the IPO noted on Thursday.

Worries about the high value of Snap started circulating when its limited user base of those below 30 years of age started reducing in number. Snap has even warned that it may never recover to its high price. That means investors who bought the shares at its peak could lose some of their investments.

For Wall Street, firms always struggle to keep off the IPO price or going below it as it is a sign of loss of investments and confidence from the public. However, it does not always mean that the firm is doomed to fail since the likes of Facebook and Alibaba have slipped below their IPO prices but are now some of the most valuable firms on the planet.

In the case, if Snap, however, investors may need to wait a little longer see the price turnaround to profitability.

Sponsored
Ali Leghari

Share
Published by
Ali Leghari

Recent Posts

Rumors Indicate iPhone 17 May Feature Unconventional Camera Design

Apple is reportedly preparing for a significant design overhaul with its iPhone 17 series, blending…

3 hours ago

First AI-Powered Teacher Launched in Pakistan’s Private School

Karachi: A private school in Karachi has unveiled Pakistan’s first AI-powered teacher, a groundbreaking move…

4 hours ago

Yahoo Surprises Users with Its Latest Android Launcher

Third-party apps have long been a staple of the Android ecosystem, but their appeal has…

5 hours ago

Phase-II Review of PTCL-Telenor Deal Finalized by CCP

ISLAMABAD: The Competition Commission of Pakistan (CCP) has completed its Phase-II review of Pakistan Telecommunication…

5 hours ago

Xiaomi’s SU7 Achieves New Production Record, Driving Q3 Growth

Xiaomi has shattered records by producing 100,000 vehicles in just 230 days. This is nearly…

7 hours ago

Teachers Can Now Access OpenAI’s Free AI Course

OpenAI, in collaboration with nonprofit organization Common Sense Media, announced on Wednesday the launch of…

8 hours ago