Snap Slips Below IPO Price Amid Doubts Over Future Growth


Snap Inc. shares fell below their initial public offering price for the first time amid questions about the company’s ability to grow as fast as initially expected and after recent declines in technology stocks worldwide.

The stock closed down 1.1% at $16.99 in New York Monday, below the $17 IPO price set on March 1 and having earlier slipped as low as $16.95. To regain value, the company will need to prove that its advertisements are a must-buy, not just an experiment, and will need to keep innovating on its product as Facebook Inc. copies its most popular features, analysts have said.

“The pace of growth in monetization may not be as fast as we originally modeled,” Mark May, an analyst at Citigroup Inc., said in a note downgrading the stock last month. “We expect user growth will remain modest near-term.”

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Via AdAge

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