Snap Inc. (NYSE:SNAP) stock has declined 14% since its initial public offering price of $17 on March 2, 2017. Shares were up 3.23% at the bottom of the noon hour on January 10.
Snap stock took a hit after releasing its third quarter results on November 7. Daily active users (DAU) increased by 4.5 million or 3% quarter over quarter, which missed analyst estimates. The company posted a net loss of $443 million compared to a $131 million loss in the prior year. Snap leadership decided to overhaul its Snapchat app in an effort to reach a wider audience.
Some analysts are expecting an adjustment period as Snap rolls out its updated Snapchat platform. The company has been unable to keep up with the performance of Instagram, which is owned by Facebook Inc., and established itself as a direct competitor with Instagram Stories. Whatsapp has also implemented the signature Snapchat feature. Both Instagram and Whatsapp have generated more Daily Active Users than Snap.
The updated Snapchat app will attempt to broaden exposure from related users which should boost ad revenue going forward. The company will be looking to build off of a 2017 that saw the stock peak at $29.44. However, shares subsequently fell and stagnated into the New Year. Snap will have its work cut out for it in 2018. Investors that want to bet on a bounce back this year should look to stack Snap stock early and often as it lurches through this adjustment period.
