Snap Tumbles Below IPO Opening Price as Analysts Say Sell

Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by PhilWright on Monday March 06, 2017 @11:04PM (#13808183)

I love the way all reporting of stocks has to show the stock either 'surging', 'soaring' or 'tumbling', 'crashing'. An IPO priced at $24.00 that sells three days later at $23.77 has not tumbled. Sure, it was relatively volatile in the first few days but that is common on high profile IPO's until the price settles to a market determined level.

EDIT: No doubt if it rises to $25.00 tomorrow it will have 'rebounded' and be worth another hyped headline.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by ffjffsfr on Tuesday March 07, 2017 @03:15AM (#13808994)

:+1

Facebook IPO set target price to 38$. It went down immediately at extreme point falling down to 18$ a share. It only got back to 38$ after around one year. What is the price now? 137$ Not saying this will happen to Snap, just saying IPO-s usually show similar dynamics.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by codecamper on Tuesday March 07, 2017 @04:41AM (#13809291)

I'm the biggest loser, having bought $60,000 worth of FB at 18, only to sell it at 19 or 20. Geez O Pete. I couldn't get comfortable with such a big chunk of my net worth in one stock. Not sure if Snap will perform the same miracles as FB however.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by fab1an on Tuesday March 07, 2017 @04:45AM (#13809312)

You shouldn't judge decisions purely based on their outcome, and especially not with stocks. If 60k is a significant chunk of your net worth and you don't want to just gamble, it was probably rational to at least sell part of it...

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by mobiplayer on Tuesday March 07, 2017 @05:29AM (#13809451)

Getting 5-10% extra is a win in my books. You did the right thing at the time, don't sweat it.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by csomar on Tuesday March 07, 2017 @06:32AM (#13809643)

Not really. If he bought a volatile stock and sold with only 5% profit, then he didn't make much considering the risks he was taking.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by tinco on Tuesday March 07, 2017 @06:51AM (#13809717)

He also did not lose much, considering the risks he was taking..

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by hndamien on Tuesday March 07, 2017 @06:55AM (#13809728)

There is never a bad time to take a profit.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by AJ007 on Tuesday March 07, 2017 @07:37AM (#13809875)

I did something similar with Netflix after their streaming/DVD debacle. Bought a bunch low, and then quickly sold it after the recovery. I sure missed out on a massive return!

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by dabber on Tuesday March 07, 2017 @10:38PM (#13817683)

And a split :(

...I did the same

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by bfrog on Tuesday March 07, 2017 @05:59PM (#13815982)

Gains are gains. It's not the gains you wish-you-coulda-woulda-shoulda, it's the losses!

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by slededit on Monday March 06, 2017 @11:12PM (#13808218)

If a 12% single day drop doesn't count as a tumble then what would in your definition?

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by encoderer on Tuesday March 07, 2017 @12:16AM (#13808423)

You have to take it in context of relative volatility. There are products where a 12% move wouldn't be notable. In this case, it's under a week old. This expected volatility is why market makers do not sell options on ipo issues for a little while.

These kinds of stories are like basing a climate change story on unseasonably warm weather.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by beejiu on Tuesday March 07, 2017 @03:09AM (#13808975)

In other words, people are using the market to determine the valuation rather than using the valuation to determine the market.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by encoderer on Tuesday March 07, 2017 @08:44AM (#13810214)

This is how the market works. It's crowd sourcing valuations. It's not a bad thing. Do you have a better way to determine the valuation of a complex business?

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by beejiu on Tuesday March 07, 2017 @02:42PM (#13813958)

The purpose of the market is not to determine valuations, it is to facilitate transactions. The transactions happen at different prices (very close together) - the idea is the market participants (buyers and sellers) have their own ideas about valuation and enter transactions accordingly. All else is speculation.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by JumpCrisscross on Tuesday March 07, 2017 @09:29PM (#13817338)

> the purpose of the market is not to determine valuations

Promoting price discovery [1] is one of the fundamental features and functions of a market.

Side note: the line between "speculation" and "investing," where the former refers to short-term shareholding and the latter to a specific set of Graham-Dodd valuation models, is not a general economic term. It only makes sense when discussing Graham-Dodd investment styles, which are a subset of long-term financial investment styles, which are themselves a subset of the market.

[1] https://en.m.wikipedia.org/wiki/Price_discovery

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by fixermark on Tuesday March 07, 2017 @10:52AM (#13811294)

Sample over a wider time-window (a quarter, at least, seems reasonable; a year if you really want a sense of the business's pulse).

Motion in the stock right now is noise; possibly profitable noise for some people, but there's very little to draw conclusions from in these post-IPO fluctuations.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by gcb0 on Tuesday March 07, 2017 @03:35AM (#13809065)

that's how it goes for companies without real profit.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by ryanfreeborn on Tuesday March 07, 2017 @03:50AM (#13809123)

At least until after a few 10ks

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by xiaoma on Tuesday March 07, 2017 @07:30AM (#13809845)

I lost about 50% on my Apple stock in a single day shortly after buying it during the early 2000s. I didn't mean the company's actual business had drastically deteriorated. It just meant that shares I had previously evaluated to be a good purchase were now on sale and it was time to buy more.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by option_greek on Monday March 06, 2017 @11:35PM (#13808304)

Not to mention list price usually acts as a good floor (unless the IPO was overpriced to begin with).

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by drawkbox on Monday March 06, 2017 @11:08PM (#13808202)

Not to mention the wider market is actually in a 'tumble' for the last few days, probably in anticipation of the fed rate increase.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by johnchristopher on Tuesday March 07, 2017 @04:24AM (#13809241)

Stocks are fragile creatures in need of constant monitoring attention.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by Kurtz79 on Tuesday March 07, 2017 @04:52AM (#13809338)

It's funny how the truth is probably the opposite, for the average investor.

One should make a buy/sell decision based on a medium/long term evaluation of the company prospects and try to ignore as much as possible the daily ups and downs.

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by pg314 on Tuesday March 07, 2017 @05:02AM (#13809357)

Not only average investors.

Lethargy bordering on sloth remains the cornerstone of our investment style: This year we neither bought nor sold a share of five of our six major holdings. -- Warren Buffet in the 1990 letter to the shareholders [1].

[1] http://www.berkshirehathaway.com/letters/1990.html

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Re:Snap Tumbles Below IPO Opening Price as Analysts Say Sell by jsemrau on Tuesday March 07, 2017 @06:31AM (#13809640)

It's like it was written by the Trump administration.

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