Snap Inc. (NYSE: SNAP) has been a big question mark for Wall Street, and since shares bottomed late this summer there seem to be more questions than answers. A good barometer of investor sentiment is short interest, and Snap is seeing a big swing there.
Short interest in its shares rose by about 13 million to 121.13 million in total for the two-week period that ended October 13. The figure is an extremely high 25% of Snap’s float.
Snap has been facing increased competition from Facebook’s Instagram, cramping the space.
Instagram now claims 800 million monthly active users, according to a report in the New York Post. When Snapchat presented results last month, it reported 173 million monthly active users.
It gets worse. Instagram’s stories feature now claims 250 million monthly users, about 45% bigger than all Snapchat’s users. Facebook executive Carolyn Everson also told the Advertising Week conference in New York that Instagram now has more than 500 million daily users.
24/7 Wall St.Instagram isn’t the only problem that Snap is facing, but it’s a big one. Considering this, among other issues that Snap has been facing, investor sentiment seems to be taking a more negative tone as short interest rises.
Shares of Snap traded up q.5% at $14.81 early Wednesday, with a consensus analyst price target of $14.78 and a 52-week range of $11.28 to $29.44.
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