Connect with us

Tech

Snap Inc’s Stock reaches a Record Low

mm

Published

on

Snap Inc's Stock reaches a Record Low

Snap has hit the all time low figure for its share price, closing at $4.85 on Friday. Ever since the company was made public last year, the share price has been dropping only. Opening at $17, the company is today at less than $5. Just ahead of Christmas holidays, having such a blow is proving harmful for the company.

This drop took place as the investors started questioning the future of Snapchat. The company has failed to impress its investors on how it plan on making the product successful in future and grow its user base. Moreover, with rate hikes of Federal Reserve and impending government shutdown, the company is facing a lot of struggles.

And these struggles are not just it.

There is a head on collision of Snapchat with Instagram, which copied its stories feature and has now become one of the biggest growing social media platform. Add to that, some of the bad decisions taken by Snap Inc., such as changing the design of the product very quickly which received a lot of criticism. This eventually led the company to change the design again.

Also, since Snap couldn’t meet the internal goals this year, its employees will also not be getting any cash bonus for the 2nd consecutive year. Many major heads of the company have also left, such as engineering head, communication lead, marketing head, business head, and so on.

Ever since it has been launched, after just a minor rise, it is dropping rapidly. And the fall has become more prominent in the last few days.

Poor redesign in Q1, and impending Government actions, clubbed with failure to win over the investors are some of the major causes why Snap Inc’s stock has reached a record low on Friday.

Michelle has been a part of the journey ever since Bigtime Daily started. As a strong learner and passionate writer, she contributes her editing skills for the news agency. She also jots down intellectual pieces from categories such as science and health.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Global Crypto Market Cap Threatens to Break Below Current 2022 Lows

mm

Published

on

The global cryptocurrency market capitalization topped during the first half of November 2021, and since then it has been on a one-way ride towards the downside. With the entire market currently trading at approximately 35% below all-time highs, many traders are now wondering whether the sellers are already exhausted, meaning that an upward shift is due in the near future, or whether the bear market still has room to go. 

In such a challenging environment, trading or investing in crypto is tricky, making it difficult for traders/investors to time the market correctly, and spot key support/resistance areas on the chart. All of the variables that drove valuations higher between 2020-2021 (fiscal/monetary stimulus, weaker fiat currencies, and appetite for riskier assets) have reversed, leaving bulls stumbling for the exit. 

Bitcoin weakens below $40k 

Speaking of Bitcoin, the $38,000 area is regarded as key support, which might be one of the reasons why the price is still trading around it. The late-March 2022 rally failed to gather pace and now BTC finds itself trading close to the yearly lows. 

Things are not looking encouraging, not just because Bitcoin lost 40% from its peak, but also based on the market share. During broad crypto selling, the BTC market dominance increased in past cycles. It doesn’t seem to be the case now, as the figure has stabilized around 42% since mid-2021. Investors want to keep a diversified exposure even during a downturn, and this is a clear signal that Bitcoin’s safe-haven status is weakening. 

Major altcoins not showing signs of strength

Anyone who is just beginning to learn how to trade cryptocurrencies should know that this is an environment where caution is advised. Bitcoin aside, things are not looking very good for the altcoins sector as well. Based on the opening price at the beginning of 2022, Ethereum is down 24%, Binance Coin -26% and other tokens such as Solana are posting losses above 50%. 

There this might not be the time for buy and hold, considering that valuations might be even more attractive in the future. It is possible, however, to take advantage of what retail brokerages are offering in terms of crypto trading benefits. With derivatives based on cryptocurrencies, short-selling is a viable option, making it possible to take advantage of bearish conditions. 

Inflation and broad risk appetite

Rising inflation around the world set a chain of events in motion, and these events are clearly not in favor of crypto bulls. Central banks are forced to step in and normalize monetary policies in developed countries, for price increases to diminish towards their target of around 2%. 

Additionally, fiscal spending is taking a few steps back, as governments need to pay higher interest on new debt or refinancing operations. During a time of rising prices, private and institutional investors need to make concessions and prioritize spending. 

In such an environment, the interest in volatile assets such as crypto is very low, which explains the lack of momentum. For the time being, global capitalization is trading around $1.72 trillion and threatens to break below the 2022 low of $1.64 trillion. Until the global economy receives a new round of stimulus, there appears to be little hope for a strong bounce back to a bull run. 

Continue Reading

Trending