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Morning Report: Snap’s Shares Slip Further, Nearing Its IPO Price

Morning Report: Snap is in the middle of racking up another day of stiff share price declines. What’s going on?

Shares of Snap, the parent company of the popular Snapchat social app, are off 4.47 percent today, easing 84 cents per share to $17.97.

That price is notable. Snap sold shares in its IPO at $17 per share, putting the hot consumer technology uncomfortably close to its debut value.

The company’s multi-billion dollar IPO was initially followed by a strong run in its value. Snap, as we have reported ad nauseum, opened at $24 per share, and traded as high as $29.44 before slipping.

We don’t need to relitigate the company’s earnings report. Instead, observe the following chart, tracking Snap’s share price including the result of earning’s correction:

As you can see, starting on June 5, Snap has posted stiff losses in four of the five sessions, reducing its value from over $21 to under $18.

What’s going on? There are, at least, two possibilities. First, a report came out recently that saw strong media pickup detailing a potential slowdown of Snapchat downloads. Headlines like “Snapchat downloads are dropping off a cliff” aren’t salubrious in the short-term.

And Citi downgraded Snap’s shares. Here’s CBNC on that:

Regarding that final bullet point, it’s correct but incomplete. The number, as of writing, is 38.96 percent. Ouch.

The takeaway from all of this is simple enough: Snap’s debut boded well for unicorn IPOs, money-losing-tech-company IPOs, and consumer-facing digital IPOs. If Snap gives up all post-IPO gains, it could somewhat dampen investor interest in new offerings.

From the Crunchbase Daily:

SoftBank buys robot pioneer Boston Dynamics

  • SoftBank announced that it its acquiring Alphabet-owned Boston Dynamics, the robotics pioneer best known for wheeled and four-legged robots that maneuver like dogs. As part of the deal, SoftBank is also buying Japanese bipedal robotics company Schaft from Alphabet. Terms were not disclosed.

Houzz raising $400M, valued at $4B

  • Houzz, the popular photo site for home renovations and decor, is finalizing a $400 million funding round that will value the eight-year-old company at around $4 billion, Fortune reports. Iconiq Capital is reportedly leading the round, joined by Sequoia Capital, GGV Capital, and others.

Top accelerators invest in shared themes

  • The top startup accelerators have a history of seeing the future in ideas that sounded silly at the time. So when they invest around common themes, it’s worth noting what’s resonating. Crunchbase News looked at recent financings to pinpoint some of the concepts, from enterprise bots to smart transport, that are in vogue.
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