Should I Short SnapChat (SNAP)?

Posted by on March 6, 2017 2:29 pm
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Over the last few weeks we have written quite a bit about SnapChat (SNAP) IPO. This was the latest….Can SnapChat IPO Mark The Market Top?

Since then, SnapChat’s stock price has surged.

A few readers emailed me asking if it was a good idea to short the stock.

Consider the following analysis….

Here are my thoughts.

Fundamentally speaking, SnapChat’s stock is not worth the paper it is printed on.

However, as the analysis above insinuates, post IPO moves in most stocks are nearly impossible to predict. It can indeed just as easily end up at $100 or $10 over the next few months.

Longer-term, this stock is worthless. I would suggest the following if you are considering shorting SNAP. Let it trade first. Allow it to establish trading patterns over the next few months. Then, if the opportunity presents itself or if the stock surges higher, perhaps to $100, it might be time to consider a short position. For now, stay away.