SnapChat Stock Will Get Uglier

Snapchat shares plunged nearly 20% two sessions ago following a quarterly loss of $2.2 billion on $149 revenue.  The one positive light is that it grew its active daily users to 166 million from 122 million last year.  The other positive is that it has a highly coveted base of users - the Millennials - that advertisers would love to get access to.

Here is the chart of SNAP:
The stock has strong resistance level at $20 and it will take some time to work off the headwinds.  The stock path is likely down for the foreseeable future.  $15 is the next stop, possibly followed by $10.  Fundamentals will have to improve before this stock turns around.

Recommendation:  Avoid

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