Snap Rallies After Two-day Losing Streak
Shares of Snap Inc. soared 6.4% to $22.81 on Wednesday, snapping a two-day losing streak. The rally follows a 21% combined decline on Monday and Tuesday from a closing high of $27.09 on Friday. Snap, the parent company of the ephemeral messaging app Snapchat, went public at a price of $17 and began trading on Thursday. The company's splashy IPO led to a buying flurry that sent the stock up sharply in the two days after its market debut. However, a number of bearish initiations, many pointing to the company's shaky fundamentals and calling the stock overvalued, burst the post-IPO bubble. By comparison, the tech-heavy Nasdaq Composite closed slightly higher Wednesday, up 0.6%, while both the S&P 500 and Dow Jones Industrial Average ended slightly lower.
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