Snap slides to record low after announcing scripted shows (SNAP)

pulse

October 10, 2018 3:17 PM

Snap shares slid to a record low Wednesday after the photo-messaging app announced the launch of its new scripted shows, called "Snap Originals."

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Snap
called "Snap Originals."
Watch Snap trade here in real time.

Even Snap's launch of its new scripted shows, called "Snap Originals," isn't helping lift its share price, which hit a fresh record low Wednesday morning.

After briefly jumping 2% in premarket trading following the announcement, shares slid into the red as the market opened, touching a new low of $6.80 apiece.

Snap's stock has been hammered this year as the company's photo-sharing app struggles to keep pace with Facebook's Instagram. Earlier this year, Instagram said more than 400 million people use its Stories feature, which is almost double that of Snap's daily active users. After releasing its controversial app design in February, the company reported daily active users fell for the first time on record during the second quarter..

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But analysts are still skeptical about the company's goal to be profitable by next year. Evercore ISI analyst Anthony DiClemente said last week the company would lose 1 million daily active users in the third quarter and slashed his price target to $7 per share from $9.

Snap shares were down 52.4% this year through Tuesday.