$8.96 (down 10%) not looking good for Snapchat! Next stop $8 - what is going on with these stocks, they are collapsing and not even a whisper of takeover speculation to prompt a short term rally.
I would be interested to hear your views @JR Ewing as this share and the sector is fast running out of steam. Time to buy or leave for now and pick up lower down? One thing is for sure, the sector wont go down in a straight line but we traders may need to be very nimble on our feet to make any money!
There may have been a small bounce in the share price but this one is by no means out of the woods yet. It is flirting with the latest support line which if broken could see the share price fall to around $8. Where is the talk of takeovers and mergers as the share price continues to fall? There were constant rumours when the shares were in the $20 region but less than half that price and apparently nobody is interested?
I presume that Snapchat is awash with cash and there is no need for the company to raise the funds in the short to medium term? If the company was forced to raise money, it would be a heavily discounted fundraising. If you check the share price, it is struggling to break through the support line just above $9.20.
Are there potential problems at Snapchat which are not in the public domain? The share price just keeps going down and down. I can't imagine there are any financial issues, as from memory there was more than enough cash in the bank, but what about customer activity?
Can SnapChat really continue as a lone entity in the world of social media which is dominated by the big players?
The graph is indicating a potential breakout on the upside or the downside in the very short term - there might be some big money to be made if you are brave. Personally I would err on the side of a short term fall as confidence fades. If there are any more director/founder share sales to come, the price could be in big trouble.
More high profile staff leaving the company: https://www.thedrum.com/news/2018/09/26/snapchat-comms-chief-departs
This feels like death by a thousand cuts as the downward trend has kicked back in - what will inspire these shares to turn round? I cant see much on the horizon as investor appetite for social media type companies seems to be lacking at the moment.
