It’s Been A Rough Week At Snap
Over the weekend I posted an article about a leaked memo from Snap CEO Evan Spiegel about the state of the company. The market reaction to the honesty in what was supposed to be internally facing memo wasn’t good. As a result Snap’s stock dropped into the mid-$7s with target price downgrades from more than one Wall Street investment firm.
Since then things have gone from bad to worse. On Tuesday Business Insider published a hit piece predicting that Snapchat could run out of money (at current burn rate) by the first half of 2019. After that the stock has dropped even further – closing on Wednesday at an all-time low of $6.59.
This is further proof that investors don’t believe Snap has the executive leadership or strategic vision in place to right the ship. Snap’s Q3 Earnings call is scheduled for October 25th – do you think there will be much pressure to show some positive momentum by then?!?