Snap sinks to IPO price for first time since market debut
SAN FRANCISCO: Shares of Snap Inc dropped 4.9 per cent on Thursday to their initial public offering price, highlighting investors' loss of confidence in the social media company that faces fierce competition from Facebook.
The shares of Snapchat - a mobile app that lets users capture video and pictures that self-destruct after a few seconds - ended at US$17 (S$23.45), the price set in their March IPO that was the hottest United States technology listing in years.
Snap climbed to US$29.44 in the days immediately after its market debut but has since declined. Thursday's price was the lowest since the IPO, but it did not sink below $17.
Snapchat is popular among people under 30, who enjoy applying bunny faces and vomiting rainbows onto their pictures.
But many on Wall Street are critical of its high valuation and slowing user growth.
Snap has warned that it may never become profitable.
That worry increased after its first quarterly report in May showed declining revenue expansion. - REUTERS