On October 27, we warned you about three ticking time bombs lurking inside social media darling, Snap’s (SNAP) business.
Little did we know that all three would detonate so quickly!
On November 7, Snap reported dismal quarterly results, which sent the shares spiraling downward nearly 20% in a single day.
Even the company’s loyal underwriter threw in the towel.
After publishing a glowing post-IPO buy report in March, Morgan Stanley analyst Brian Nowak downgraded the stock to sell.
He lowered his price target to $11, too. That’s a far cry from the $28 target he initially slapped on the stock.
“Eight months after Snapchat went public, the company is a disaster,” says Bloomberg’s Shira Ovide.
Newsflash: It’s about to get even worse!
Why? As I told CNBC Closing Bell anchor, Kelly Evans, in June, “Snap’s facing a new innovator’s dilemma. Anything they can do, Facebook can do better and bigger. They’ve done it. And they’re going to continue to do it because there’s no patent protection.”
CEO Evan Spiegel is just now coming face-to-face with this reality.
But his epic response promises to be an epic failure.
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