Mar 08, 2017 08:54 AM EST
Snapchat reported more than 12 percent in trading on Monday and ended with $23.77 per share. The result has placed the fresh messaging app company below its first-day opening price of $24.
Not long after Snapchat's impressive Wall Street debut, earlier this week, the company showed a quick drop in its stocks. During the company's first day of trading, last Thursday, Snapchat climbed 44 percent above its IPO price of $17 per share. On the next day, Snapchat soared another 11 percent amidst demands from its investors.
The social media outlet's user growth, valuation and hype caused quite a stir between investors and the public. However, analysts have posed significant concerns over the popularity of Snapchat for the past weeks. "The sexier and more glamorous a company's IPO, the more likely it is to be overpriced at its IPO date," Laura Martin, an analyst with Needham, wrote in an investor note about Snapchat on Monday.
Martin described the flashy messaging service as a lottery-like stock. Just like in a lottery, taking risks do pay off but understanding Snapchat's business would suggest otherwise. A research analyst compared the company's soaring stock and valuation after its IPO in 2013. "At some point, the stock has to collide with the fundamentals," James Cordwell told CNNTech on Friday. Cordwell is referring to Snap's actual business growth.
"I guess that will start moving to the front of investors' minds as we move toward the company's first earnings report," he said. Another analyst at Pivotal Research Group noted Snapchat earnings as overvalued. Normally the value for Snapchat per share only amounts to $10 but it valued $7 more. Although its valuation continues to rise, Snapchat saw a decline in user growth late last year when its rival Facebook launched a similar Snapchat feature on Instagram.
The millennial-serving social media company only began making money two years ago and is still struggling to make a profit. Reports showed that Snapchat suffered $373 million losses in 2015 and another $515 million losses in 2016.
People who travel for business two weeks or more a month report more symptoms of anxiety and depression and are more likely to smoke, be sedentary and report trouble sleeping than those who travel one to six nights a month, according to a latest study conducted by researchers at Columbia University's Mailman School of Public Health and City University of New York.
President Trump said Friday he is declaring a national emergency on the southern border, tapping into executive powers in a bid to divert billions toward construction of a wall even as he plans to sign a funding package that includes just $1.4 billion for border security.
Amazon's decision to abandon plans to build a new campus in Long Island City, Queens, has drawn cheers from several politicians, community organizers and other locals opposed to the expansion.
One of the hottest topics at the World Economic Forum in Davos, Switzerland has been Alexandria Ocasio-Cortez's proposed 70% marginal tax rate on all income above $10 million.
In recent decades, Europe has experienced a downward trend in the annual number of deaths. Not only was this trend not arrested by the economic recession that started in 2008, in fact, the rate of decline increased during the recession years.
Discovering that your new designer handbag or gold watch is a fake is costly and annoying, and counterfeit medical devices or drugs could have even more serious consequences. But seemingly as soon as manufacturers develop a new method to ensure product authenticity, counterfeiters find a way to outsmart it. Now, researchers have created an "unclonable" tag that can never be replicated, even by the manufacturer. They report their results in ACS Applied Materials & Interfaces.
The traditional model for setting auto insurance premiums has been to base rates on the motorist's driving history, age, gender and even marital status (in some states). Thanks to new technological options, insurance companies, and motorists have started to work together to give the insurance companies access to better data on an individual driver's risk level, and give the same driver a sense of greater control over how much he or she will pay in insurance premiums.
Consumer brands have long used old-fashioned focus groups, interviews and surveys to best gauge consumer wants, desires and needs as part of processes that range from product development, to marketing and sales. As machine learning and artificial intelligence (AI) have emerged, there is an increasing interest in the ability to harness these solutions to save time and money, and to yield more reliable consumer insights.