Here's How Much Investing $100 In The 2017 Snap IPO Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Snap’s Difficult Decade

One market laggard of the last decade was social media leader Snap Inc SNAP.

Snapchat was founded in 2011, and made the move to go public in March 2017. Snap was one of the highest-profile IPOs of the 2010s, launching with a $30 billion market cap on its first day of trading.

Unfortunately, investors expecting Snap to burst out of the gates as the next Facebook, Inc. FB have been sorely disappointed. Snapchat’s impressive daily active user growth slumped and even dropped in 2018. To make matters worse, while revenue has continued to grow, losses did too, peaking at $3.4 billion in 2017 before dropping to $1.3 billion in 2018.

After selling IPO shares at $17, Snap shares hit their all-time high as soon as they hit the market, soaring up to $29.44 during the frenzy surrounding its IPO in 2017. Within four months, Snap was back below its IPO price.

Snap shares continued to tumble on fears surrounding competition from Facebook, slowing user growth and massive cash burn. Snap stock hit its all-time low of $4.82 by late 2018.

2020 And Beyond

Snap’s turnaround efforts sent shares soaring as high as $19.75 in early 2020.

Unfortunately, the stock has taken a nosedive thanks to COVID-19, dropping as low as $7.89 before bouncing back to around $13. So $100 worth of Snap IPO stock in 2017 would be worth about $76 today.

Looking ahead, analysts are optimistic Snap can regain its footing in 2020. The average price target among the 35 analysts covering the stock is $16, suggesting 23.5% upside from current levels.

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