Snap sinks below $5 for the first time

  • Snap shares slumped below $US5 for the first time on Thursday.
  • They are down more than 70% below their $US17 initial-public-offering price.
  • Watch Snap trade live.

Snap shares briefly dropped below the $US5 mark for the first time Thursday as a difficult year for investors in the social-media company got even worse. The stock has slumped more than 65% year-to-date and is down more than 70% since going public at $US17 in March 2017. It’s currently trading at $US5.06 a share, as of 2:26 p.m. ET.

The year actually started off on a positive note for Snap investors. Shares spiked to a record-high of $US21.22 in February, after the company reported strong fourth-quarter revenue and a big jump in users. But that is where they topped out as the unpopular Snapchat redesign put pressure on the stock.

“Sooo does anyone else not open Snapchat anymore?” Kylie Jenner asked her Twitter followers back on February 22. “Or is it just me… ugh this is so sad.”

She followed up with another tweet: “Still love you tho snap … my first love.”

Since Jenner’s tweet, almost $US19 billion of market value has been wiped out as the company has struggled to retain users. In October, the company’s third-quarter results showed the number of daily active users on the Snapchat app totaled 188 million, down 2 million, or 1%, from the previous quarter. That number is expected to decline further in the fourth quarter.

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