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Is Snap Inc. (SNAP) a Buy at Price Lower than IPO?

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Snap Inc (NYSE: SNAP ) has had a rough go since entering the public markets. And now, SNAP stock is below its IPO price.

Source: Shutterstock

So does that mean you should buy now that shares of this social media stock are cheap?

SNAP stock has traded in the $15 range recently, below its IPO price of $17. That's a first even though Snap Inc. has had plenty of declines to speak of lately; shares have lost 50% of their value since a short-lived 52-week high immediately after going public.

Snap stock has been on a topsy-turvy ride since its spectacular IPO debut. The stock surged almost 44% from its IPO price and reached an all-time high of $29.44 the very next day. However, post that, it has lost some shine. For the past few weeks, shares have hovered around the $17-$18 level.

What's Next for SNAP Stock

Investors remain wary of Snap's slowing user base, decelerating revenue growth rates and no profitability (six years into existence). More importantly, stiff competition from Facebook Inc. (NASDAQ: FB ) property Instagram poses a major threat. Instagram has been copying Snapchat's features for quite some time now.

Interestingly, analysts have related the slowdown in Snapchat's user growth to the popularity of Instagram Stories...


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