Snap Inc (NYSE:SNAP) has been on a rough ride in 2018, with its share price down more than 50% since the start of the year. With no profit and Facebook, Inc. (NASDAQ:FB) copying some of its key features, there's been less of a reason than ever to invest in the stock.
However, that alone might make it a good time to buy. When the bears are out in full force, that's when you start to find some good bargains on the markets. Although SNAP has declined heavily lately, it could be a good time to take a bit of a gamble on the stock. After all, the company still had 186 million daily active users last quarter, and while that may still be down slightly, it’s still a big user base of what’s a very young demographic.
What makes Snap an appealing investment option is that the brand has become popular with millennials and younger audiences, and that's very important for advertisers. Sure, Facebook has more money and can produce similar features, but if it can't attract the demographics that advertisers want, then it won't be able to beat Snap.
If Snap can just maintain its popularity, then the stock could have a lot of upside. Although the company may not be producing profits, it’s continuing to grow with sales increasing 43% in Q3. And at under $7 a share, Snap is coming off the lowest price it has ever been at, and it could be a good time to lock in a low price for a stock that still has a lot of potential.
