When Snap (NYSE: SNAP) went public in early 2017, many critics claimed it would struggle to justify its high valuation, narrow its losses, and fend off Facebook's (NASDAQ: FB) Instagram.
For a long time, the critics seemed right. Snapchat's daily active user (DAU) growth stalled out in 2018 as Instagram cloned its features. It continued burning cash and its price-to-sales ratio remained high.
Snap's stock slid below its IPO price of $17 in late 2017 and plunged to about $5 in 2018. It bounced back above its IPO price in early 2020, but the COVID-19 crash last March sent it back below $10.
Source Fool.com