Shares of Snap Inc. (NYSE:SNAP) were up nearly 4% in morning trading Tuesday, putting the struggling stock on course to break a six-day losing streak that has watched the company shed more than 13% of its value.
After closing at $13.22 per share on Monday, Snap opened modestly higher at $13.33 on Tuesday morning. Nevertheless, the stock quickly surged to an intraday high of $13.82 and eventually settled near the $13.70 level in early trading hours.
Tuesday’s gains put the social media company on pace to see its first positive day after six-straight negative trading sessions, which marks its second-longest losing streak in its short history as a publicly-traded stock.
Snap’s longest losing streak occurred in early July and lasted eight trading days. Shares of the Snapchat parent lost nearly 15% during that decline. On Monday, the stock finished trading at its lowest closing price since August 16.
Snap has failed to generate any momentum since its March debut, and shares now rest comfortably below their IPO price of $17. Nevertheless, this latest slump comes on the back of an industry-wide lull in the digital advertising space.
As Marc Pritchard, the chief brand officer at Procter & Gamble (NYSE:PG) , pointed out at a recent marketing conference in Cologne, digital advertisers seem to be running out of ideas—and someone desperately needs to save the day.
“Bottom line, it is time for marketers and tech companies to solve the problem of annoying ads and make the ad experience better for consumers,” Pritchard said, via Ad Age.
Those bullish on Snap see the company’s unique platform as an opportunity to be this hero. Although Snapchat’s disappearing messages and “story” mode ideas have been copied throughout the social media world, its location-based services are still relatively unparalleled, and it already has a head-start with developing short and engaging branded content.
Nevertheless, the stock remains a Zacks Rank #3 (Hold) and sports an overall VGM grade of “D.” In comparison, its social media nemesis Facebook (NASDAQ:FB) is currently rocking a Zacks Rank #2 (Buy).
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