Snap Inc.'s stock continued to fall Thursday in response to sluggish growth prospects for the maker of the popular disappearing-photo app Snapchat.
The stock was down as much as 5 percent early Thursday after falling nearly 15 percent Wednesday after the company reported lackluster third-quarter financial results.
It was the stock's lowest point since Aug. 11 after similarly disappointing second-quarter results.
Snap went public at $17 a share in March in one of the most touted initial public offerings in recent years, but the shares have continued to trade below that price in the past few months.
The stock's decline not only is a problem for Snap's investors, it also could further threaten Snap's growth by turning off potential Snapchat advertisers, analyst Lloyd Walmsley of Deutsche Bank said.
"We fear that poor results and stock performance may feed into a cycle of negative advertiser perception around Snapchat as an ad platform," Walmsley said in a note to clients Wednesday.
On Wednesday, the Chinese company behind the popular social-media app WeChat and a major player in mobile gaming, expressed a vote of confidence in Snap by acquiring a 12 percent stake in the company for about $2 billion.
(c)2017 Los Angeles Times
Visit the Los Angeles Times at www.latimes.com
Distributed by Tribune Content Agency, LLC.