Snap Lowers IPO Price as Facebook Competition Mounts
Snap lowered its valuation, signaling an "interesting ride" for investors is ahead.
Snap, the parent company of Snapchat, lowered its valuation to around $22.5 billion compared to its initial target of $25 billion.
Michael Ingram, a market strategist BGC Partners in London said Snap likely scaled back a little bit because potential investors were disturbed by falling Snapchat usage year over year in the fourth quarter.
The number of Snapchat users stands at about 158 million, meaning Snap has a long way to go if it wants to catch up to Facebook's (FB) - Get Report vast user vase, which extends over a billion.
Ingram said to expect ups and downs in Snap's share price. "It's going to be an interesting ride for investors for sure," Ingram said.
TheStreet's Scott Gamm reports from Wall Street.
