Tech giant Snap shed nearly 10 per cent of its share price today after an influential analyst released a disparaging note on the firm's fortunes and slapped it with a "sell" rating.
BTIG analyst Richard Greenfield urged investors to sell the stock in a note, saying he was "tired of watching Snapchat decline from the sidelines".
It follows the firm's second in command Imran Khan announcing his exit from the tech giant earlier this week.
Since its shares peaked in March 2017 after it floated on the New York Stock Exchange, its price has tumbled 60 per cent as it has struggled in a difficult market. Weak growth, huge competition from Facebook and quick exec turnover have all hit Snap hard.
"We incorrectly stuck to our neutral rating in October 2017 due to our view that communications apps were sticky and would protect Snapchat engagement, with management simply needing more time to figure out monetization.," Greenfield continued.
He also explained his reason for the sell rating, citing the rate the company burned through cash, low user growth and a lack of product innovation as contributing factors.
Greenfield also lowered his price target for the tech share to $5. That's less than a quarter of what it was worth when it floated at $27 a share.
Read more: Snap is losing one of its top executives