Snap's IPO price was $17 but the stock quickly hit $29, before dropping as far down as below $21 per share. The stock erased some of its loses on Wednesday, but remains well below its peak.
And that was enough to trigger Wall Street's bearishness on Snap's long-term capabilities. Unfortunately for Snap, it continues to get compared to the fallen stars like mobile game developer Zynga (ZNGA) , action camera pioneer GoPro (GPRO) and even local deal marketplace Groupon (GRPN) .
Negative sentiment is on the rise and investors are clearly uncertain about Snap's future path. However, we feel that Snapchat is no Twitter and has enough wind in its sails to eventually drive profitability.
First, we'll address the company's criticisms. Investors who've had a tough time with Twitter will tell you how Snapchat could go down that same road and they'll also mention that Facebook (FB) has an iron grip on the social media market plan.
After Twitter debuted at $26 per share, the company ended 2013 at $69 per share--more than double its IPO. However, by April 2015, Twitter's upward movements came to an end and by the start of 2016 the company's stock traded at $16.