Snapchat parent Snap Inc. may be exceedingly popular with millennial consumers, but some of that love has certainly been lost with those who decided to buy stock in their favorite social network, as Snap’s shares are down 18 percent over the last three months. And the news got worse Thursday.
During afternoon trading, Snap briefly traded at its $17 IPO price for the first time since going public March 2. The stock started trading at $24 a share and reached its high of $29.44 the day after, before beginning what’s become a gradual slide back to where Snap shares started. The stock rebounded and currently trades just north of $17 with a little less than two hours left in the day, but that was a milestone nobody at the disappearing message-based social network was hoping for.
Tech stocks in general have had a rough week, but companies like Amazon (down 5 percent over the last 5 days) and Microsoft (down 3 percent over the same time period) are coming off of multi-year bull runs and recent all-time highs. Snap shareholders have no such luxury.
The company also failed to win over a lot of hearts and minds on Wall Street with its first-ever earnings release in May, as Snap revealed a $2.2 billion loss that sent its stock tumbling nearly 20 percent and raised new questions about its young management team.
At least plenty of the millennials who made Snap their first foray into trading are learning one important lesson: The stock market is hard.