Snapchat owner Snap's shares close below $20 for the first time

Courtney Goldsmith
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Snapchat Parent Snap Begins Trading On New York Stock Exchange
Snap's shares fell below $20 for the first time (Source: Getty)

The parent company of messaging app Snapchat's shares closed lower yet again today as the tech sensation fails to wow investors.

Stock in Snap fell below $20 for the first time, closing down 4.24 per cent at $19.89 and edging closer towards the firm's original offer of $17 per share.

The company's shares jumped 40 per cent on its first day of trading at the beginning of March, but they quickly fell back down to earth, wiping $4bn off the company's market cap. They have been steadily sliding lower ever since.

MoffettNathanson analyst Michael Nathanson gave the company a target price of $15 in a note to investors, as Snapchat's average daily user number growth slows and revenue and profitability looks limited.

"Snap's income statement is going to look a lot more like Twitter than Facebook," Nathanson said.

Read more: Snap: Investors get spooked when you have no long term plans

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