The social media platform Snapchat is apparently experiencing a financial downturn after rapidly losing money according to a Wall Street analyst.
CNBC initially reported the story showing that Snapchat, Snap Inc., dropped five percent and are hovering around $7 per share. This is the lowest share price Snapchat has experienced all year.
“While it is obvious that Snap wasn’t prepared for life as a public company, it now has a more pressing problem. It is quickly running out of money,” said Michael Nathanson, media and tech analyst of MoffettNathanson said on Tuesday. Nathanson predicts the company could be washed by 2020 if not for a “miracle” solution in the meantime.
Nathanson stated further, “Although Twitter pulled off a similar miracle, call us skeptical as – despite the memo – we don’t have faith in Snap’s leadership to navigate these rapids.”