Skip to main content

Snapchat Slides as Facebook Climbs: SNAP, FB in Charts

Snapchat parent Snap Inc's stock (SNAP) is sliding after a downgrade from Morgan Stanley. The stock is set to close -9% on the day.


Snap Snapchat Stock Price Chart Downtrend


As the updated price chart shows (see annotations), SNAP has been suffering since its first quarterly earnings report back in May 2017

Since then, the downtrend has accelerated. After a brief rebound above $21, SNAP has continued to trade at new lows. Today's gap down put the stock well below its IPO price of $17.

From Fortune: "Snapchat's Biggest Underwriter Says It Was 'Wrong' About SNAP Stock"


"...Morgan Stanley's downgrade is a particularly hard hit for the company as the bank was an underwriter for Snap's IPO, guiding the company through the process. Typically, such underwriters become cheerleaders of the company after it officially goes public, authoring "buy" or "hold" recommendations. And Morgan Stanley was no exception.

Following Snap's IPO, Morgan Stanley gave Snap (snap, -8.65%) the equivalent of a "buy" rating and a 12-month target price of $28—one of the most bullish on Wall Street at the time.

But now, the bank has lowered its price target by 43% to $16 a share. That's well below Snap's IPO price."

Never a good sign when your own underwriter throws you under the bus, after profiting on the deal...

Meanwhile, Facebook (FB) shares are trading just below their recent 52-week high and look poised to break out to new all-time highs. 

Facebook FB Stock Price Chart


Facebook has been keeping Snap at bay with Instagram, its highly popular photo sharing service and social network. Instagram grew to 700 million users in 2017, and its newly-created Snap competitor, Instagram Stories, currently boasts 250 million active users. 

After slogging through a rough post-IPO year of its own back in 2012, FB rocketed higher in July 2013 after an impressive earnings report. Facebook shares have climbed steadily higher since then, outperforming the Nasdaq 100 (see chart below) and social media competitors such as TWTR and SNAP.

Facebook FB Nasdaq QQQ ETF Stocks Chart


Facebook (FB) is up 425% since its 2012 IPO week, while the QQQ is up 125% over the same period. So far, FB remains the undisputed stock leader in its space.

Related posts:

Facebook (FB) at New All-Time High as Twitter (TWTR) Sinks.

Subscribe to the free Finance Trends Newsletter. You can follow our real-time updates on Twitter. 

Popular posts from this blog

Seth Klarman: Margin of Safety (pdf)

Welcome, readers! Signup for free email updates at the Finance Trends Newsletter . Update: PDF links removed due to DMCA notice. Please see our extensive Klarman book notes below. New visitors, please check the Finance Trends home page for all new posts. Here's something for anyone who has been trying to get a look at Seth Klarman's now famous, and out of print, 1991 investment book, Margin of Safety .  My knowledge of value investing is pretty much limited to what I've read in Ben Graham's The Intelligent Investor (the book which originally popularized the investment concept of a "Margin of Safety"), so check out the wisdom from Seth Klarman and other investing greats in our related posts below. You can also go straight to Ronald Redfield's Margin of Safety book notes .    Related posts: 1. Seth Klarman interviews and Margin of Safety notes     2. Seth Klarman: Lessons from 2008 3. Investing Lessons from Sir John Templeton 4.

Moneyball: How the Red Sox Win Championships

Welcome, readers . T o get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter .   The Boston Red Sox won their fourth World Series title of t he 21st century this we ek. Having won their first Se ries in 86 years back in 200 4, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it? Quick background: in late 2002, team own er and hedge fund manager, John W. Henry (with his partners ) bought the Boston Red Sox and its historic Fenway Park for a reported sum of $ 695 million. Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship. This brings us to one of my fav orite scenes from the 2011 film , Moneyball , in which John W. Henry (played by Ar liss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pi

William O'Neil Interview: How to Buy Winning Stocks

Investor's B usiness Daily founder and veteran stock trader, William O'Neil share d his trading methods and insights on buying winning stocks in an in-depth IBD radio interview. Here are some highlights from William O'Neil's interview with IBD: William O'Neil's interest in the stock market began when he started working as a young adult.  "I say many times that I didn't get that much out of college. I didn't have much interest in the stock market until I graduated from college. When I got married, I had to look out into the future and get more serious. The investment world had some appeal and that's when I started studying it. I became a stock broker after I got out of the Air Force."    He moved to Los Angeles and started work in a stock broker's office with twenty other guys. When their phone leads from ads didn't pan out, O'Neil would take the leads and drive down to visit the prospective customers in person.