They've been heavily shorted for a while now and their puts are expensive. But really 1 Billion new shares could flood the market in just a few more weeks.
To put it in perspective I believe Twitter, the other poster child for giving away options, had about half that amount.
Even the IPO underwriters are starting to crack. Credit Suisse used the stock drop to keep an "outperform" rating on the stock while lowering its target from $30 to $25.
IMHO Snap will do just fine for hte next year. They are big enough that companies will carve out a piece of their marketing budgets for Snap. It won't be until a year later when they have enough data on how well their Snap advertising is working that they'll decide if its worth it or not.
They've been heavily shorted for a while now and their puts are expensive. But really 1 Billion new shares could flood the market in just a few more weeks.
To put it in perspective I believe Twitter, the other poster child for giving away options, had about half that amount.
Even the IPO underwriters are starting to crack. Credit Suisse used the stock drop to keep an "outperform" rating on the stock while lowering its target from $30 to $25.
IMHO Snap will do just fine for hte next year. They are big enough that companies will carve out a piece of their marketing budgets for Snap. It won't be until a year later when they have enough data on how well their Snap advertising is working that they'll decide if its worth it or not.