The stock is priced as if growth will never return for the company, but such an outlook is arguably too pessimistic. At these prices, the stock is priced lower than its $17 IPO price in 2017. I previously covered the stock in March, when I rated it a strong buy on valuation. SNAP peaked above $80 per share but has somehow fallen 85% down to around $12 per share. This is the kind of stock I have been buying in the Best of Breed portfolio to take advantage of the tech crash. The stock is quite cheap here in an eventual recovery to stronger growth rates. Still though, there is much value to be had here, as the company continues to grow users at an enviable rate.
The latest negative price action has been driven by the predicted guidance miss only 1 month after initiating guidance. The stock did not trade at such egregious valuations at the peak yet has still managed to crash 85%. Snap ( NYSE: SNAP) is a seemingly unlikely victim of the tech crash.
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