SnapChat price tumbles following strong debut


AP

NEWARK, N.J. — Anyone wanting to invest in the company that owns Snapchat now has an opportunity to do something that early investors were unable to do: buy shares for less than they cost on the first day of trading.

After tumbling 12 percent Monday, shares of Snap Inc. fell another 10 percent Tuesday, closing at US$21.44.

Snap priced its initial public offering of 200 million shares at US$17 each. The shares opened at US$24 apiece Thursday and jumped 44 percent on their first trading day.

Industry analysts grew leery of slowing user growth numbers last year and everyone is now trying to figure out the value of a young company that is quickly catching up to Twitter in the number of people who use it.

The IPO of the Los Angeles company was the most anticipated arrival since Twitter Inc. entered the public market in 2013.