Snap is on track to break its 8-day losing streak

Evan Spiegel, Snap cofounder and CEO, speaks at the 2018 Code conference

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Evan Spiegel, Snap cofounder and CEO, speaks at the 2018 Code conference
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Greg Sandoval/Business Insider

Snap shares were grinding higher Friday, up about 1.5% at $11.58, and are on track to break their eight-day losing streak.They have been hovering around the $11.50 level over the past few trading sessions.

The gains, which could be the first positive close since August 13, come two days after Bloomberg Businessweek profiled CEO Evan Spiegel and his efforts to be more personable with his employees, who now number more than 3,000.

“I remember thinking, Why would I go around the company and just chat with people? Like that would be so awkward,” he told Bloomberg, adding that his Catholic upbringing taught him to “be a turtle.”

But while Spiegel – who has previously come under fire last year for being the highest paid CEO in the US last year – has hired a management coach and attempted to interact more with his workers, Wall Street is looking for more turnaround in the fundamentals before changing its mind.

Just six of the 36 analysts polled by Bloomberg have a “buy” rating on Snap, with an average price target of $11.76.

Shares of the social-media company are now trading more than 5% off their record high, reached shortly after the company’s May 2017 initial public offering. They are down 22.75% this year.

Still, Spiegel isn’t fazed, and says there’s plenty of room to grow as other social media giants like Facebook and Twitter sputter.

“I think one of the things that’s been really helpful in maybe the past six months or so is that the contrast is starting to become more clear between our company and the other companies in technology,” Spiegel told Bloomberg.

“What I think that people are starting to see is that other companies really are trying to make as much money as possible and really don’t care how that happens.”

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Markets Insider