CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about our Danger Zone pick this week: Three Stocks That Look More Dangerous Post 1Q21 Earnings.
With no mechanism to hold CEO Evan Spiegel accountable for his missteps, Snap’s investors can only watch the company’s ongoing struggles with frustration.
Many of the issues that plagued Snap at IPO have only gotten worse and as a result, Snap Inc., and its micro-bubble, is already in our Focus List – Short Model Portfolio, and once again back in the Danger Zone.
A recent analysis reported that the percentage of newly issued ratings of “sell” or “underweight” was only 5% of the total. This phenomenon is not new to regular market followers, and it was on full display surrounding the IPO of Snapchat (SNAP).
When SNAP first filed for IPO, there was a lot of hype and the original $25 billion valuation quickly fell to $22.5 billion. Is the market so hungry for another tech IPO that it will overlook the dismal fundamentals and nosebleed valuation of SNAP?