Shares of Snap slide more than 4% to an all-time low of $10.52 Thursday afternoon, less than 48 hours after the company reported first-quarter earnings that disappointed investors and sent the stock tumbling.
Downgrades on Wall Street sent to the stock to a record low Wednesday, surpassing the previous low mark set in August 2017.
“We are downgrading SNAP shares from Outperform to Perform and removing our $19 target,” Jacob Helfstein, an analyst for Oppenheimer, said in a note to clients this week. “We continue to believe SNAP garners high user loyalty and levels of engagement. However, most recent app redesign seems to have been “last straw” for some advertisers, who are now unlikely to give platform another chance absent significant daily-active-user reacceleration (no catalyst in sight).”
Snap announced in its earnings report that it was testing a new Snapchat design that would rollback some of the users’ hated features from the disastrous redesign that launched in February. The update will move celebrities’ stories back to the friends feed on the left-hand side of the camera, while keeping the “Discover” features, like news and entertainment, on the right.
Shares of Snap are now down 37% from their initial public offering price of $17 in March of 2017.
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