Snap Inc. took a big dive on Thursday hitting its IPO price of $17 when it went public back in March. It looks like traders are still losing confidence in the company especially as Facebook is a big rival.
Snap had been touted as the hottest U.S. technology listing to come around in years, but after it’s market debut, things quickly fizzled down. Shares of SNAP even hit as high as $29.44 just days after its IPO so many had been expecting a lot from the company.
Today shares are the lowest since its IPO and dangerously close to going even below the IPO price.
Earlier this month, JPMorgan, who was just one of the underwriters for the company’s IPO, slashed their price target to $18.
Considering that next month some insiders will be allowed to sell their shares freely, it has sparked some worry that this could give more access to short sellers.
Shares are now down over 35% since the stock’s IPO trading price.
Disclaimer: We have no position in Snap Inc. (NYSE: SNAP) and have not been compensated for this article.