The destruction of snap stock is still ongoing.
After the release of Snap’s financial report for the second quarter, investors are feeling the pain today.
The stock price is down over 40% for the day as investors reassess the business’s potential prospects.
“Investors downgrade firm shares by 40%.”
They closed below $16.50 yesterday. The stock has plunged over 90% from its September 2017 high of $83.34, wiping off billions in market cap value.
Snap frightened investors. How? The firm missed sales estimates and failed to offer information on future quarters owing to “operational risks.”
Snap’s profit multiple was unsustainable last year, but some regarded it as a sign of high expectations for the firm compared to its rivals.
Snap’s stock price has plunged far more than Twitter and Meta amid a tech market selloff.