The chart for Snapchat is actually a lot more positive than you might have assumed bearing in mind the problems surrounding the social media market. Maybe there are some surprises around the corner?
The rally was short lived:- https://www.marketwatch.com/story/s...ly-active-user-ad-revenue-concerns-2018-06-19
We might need to see some good news from the company before the shares move into higher ground. I notice that some analysts are starting to go a little luke warm on the company. Anything major in the pipeline?
I can see a relatively tight trading range from $13 up to $15 unless we see some unexpected news in the short term. In fairness the shares have not performed too badly when you consider the FB issues over recent months could have dragged the social media sector down (although FB is now more than just a social media play).
One thing worries me about this company - the recent upgrades and changes have not been received too well by customers. If you dont know what your customers want how can they move forward in this very very competitive sector? Seems to me like the founders have reached a position where they may need to bring in outside help or sell-up?
Snapchat may well be in danger of being squeezed by the major players such as FB? Also, would any one else (outside of the major social media companies) be willing to pay big bucks to take the company over and then invest the millions needed to take on FB?
I see the NASDAQ is showing weakness which would indicate traders banking profits on tech shares. Will shares such as Snap struggle to stand still as they fight against the tide? We will likely see an over sold posiiton at some time at which point it might be worth buying a few to trade.
If the share price does not bounce through the resistance level at about $13.50 then we could see a sell-off down to $12.50. The share price needs a bout of takeover speculation which has always proved lucrative in the past!
The graph doesnt look good at all. One to avoid at least until there are signs of bottoming out. With the malaise surrounding the social media sector at the moment I dont even think the price fall will flush out any potential bidders.
Shocked to see this one falling so far - unless it can maintain the latest support level it is headed towards $8 a share. What a turnaround from the first day of trading and the short term high of near $30 a share! When can founders sell their next tranche of shares?
