This Growth Stock Is Down 90%, but Is It a Buy Now?
It's no secret the U.S. economy is going through a challenging period at the moment. High inflation has prompted the Federal Reserve to aggressively hike interest rates, often 75 basis points at a time, triple the more typical 25-basis-point move.
Inflation and interest rate hikes have put pressure on consumers' spending power, in turn forcing companies to cut their marketing budgets as they prepare to earn lesser returns on their investments. That's bad news for a company like Snap (NYSE: SNAP), the parent of social media platform Snapchat, because it's reliant on advertising dollars.
Snap stock fell a whopping 28% last Friday after the company reported its third-quarter financial results. The stock has now declined 90% since hitting its all-time high price of $83.11 in 2021. But there were some positive takeaways from the report. So has the pessimism gone too far and made Snap an attractive buy?
Source Fool.com
