Snap's challenges are mounting as a growing number of rivals attack its core business — and Wall Street is beginning to take it seriously.
Stock analysts who cover the company now see Snap posting wider losses for this year and next than they expected three months ago, the latest data from Yahoo Finance shows.
Most recently, JPMorgan cut its 2017 price target on Snap to $18 from $20 on Monday.
What's more, the company's shares slid in last week — even as the broader market for tech stocks rose — after an influential
If Snap can't innovate fast enough to stay ahead of Facebook and other much-larger rivals, the company may find itself trying to generate growth out of an ever-smaller slice of the digital ad pie.
Taken together, the latest news on the company suggests that investors who are betting on Snap shares will see more of the bumpy ride that's followed its early March IPO.
The shares, which closed Friday at just over $21 a share, have traded as high as $29.44 and as low as $17.59. It was at $20.68 on Monday morning.
The risks in owning Snap shares aren't news to anyone who read it's pre-IPO financial documents.
The owner of Snapchat has never come close to making a profit and said plainly that it "may never achieve or maintain profitability." The stock will also be under more pressure this summer as the lockup on roughly three-quarters of its shares expires in late July.