![]() It's fair to say that expectations for Snap are really low. However, that wouldn't be the end of the story - the stock found its low, and has come roaring back over the past week: SNAP stock initially snapped (sorry) to the downside, falling from $24 to $20. In the short term, that consensus avoid call was correct. That's 13 different authors all telling people to avoid a stock in a four-day span. Snap Will Head Lower It's Just A Matter Of TimeĨ Reasons Why We're Not Snapping Snap's IPOīeware Of The Snap IPO: We Fear Its Value Could Disappear As Quickly As Its MessagesĪmazingly, all of those articles were published on Seeking Alpha in Snap's first week as a public company. Snapchat Will Eventually Snap Back To RealityĮgregious Valuation, Massive Losses, And Shortened Insider Lockup Period Make Snap Inc. Take a look at the tenor of Seeking Alpha articles the week SNAP went public. ![]() No, that's not an endorsement of going long Snap, let me explain. Despite Snap being one of the worst IPOs foisted onto the American market in years, I'd sleep better at night being long Snap stock rather than short. But shorting Snap now is a very dangerous proposition. You can short Snap once it's been public awhile and the hype starts to fade out. Now that I've made myself clear, a caveat. The sort of sharp rally you've seen over the past week is a warning of what could happen to overeager short sellers here. I don't normally care about these sort of companies, but since it's getting so much attention, let me be clear: Don't short SNAP stock yet. I have a very simple message about Snap ( NYSE: SNAP).
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