Dead Stock Walking: Snap Has Nowhere to Go but Down

The old saying "just because you can doesn't mean you should" would seemingly apply to vanishing-message platform Snap (NYSE: SNAP), a once highly anticipated tech IPO that has since crumbled.

It's not so much that people aren't using the app -- it's actually quite popular, having been downloaded by users tens of millions of times -- it's that growth is slowing, and advertisers are apparently getting antsy about a lack of return on their ad dollars. With advertising as the companies main source of revenue, the fact that advertisers are getting cold feet, and rival Facebook (NASDAQ: FB) is stealing engagement away through its competing Instagram platform, begs the question: How long will it be before Snap collapses?

Snap is facing a bunch of problems, with the biggest one arguably being the decline in daily user growth, which is plummeting. After having notched triple-digit gains early on in its life, Snap's user growth is well down into single digits for squential growth. And if the trend continues, they'll turn negative, too.

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Source: Fool.com