Snap is ‘so beaten down’ that the stock may have bottomed out, says investor Andrew Left
Adam Jeffery | CNBC
Andrew Left, founder and CEO of Citron Research
Following the news that Snap has been subpoenaed by the Securities and Exchange Commission and U.S. Justice Department for allegedly misleading investors in its IPO, short-seller Andrew Left was bullish on Snap stock, saying he was surprised shares didn’t dip lower on the news.
“I own Snap. It’s so beaten down, you have a high short interest,” Left said on CNBC’s Halftime Report. “Look at the negative news that came out on Snapchat today and it should be trading much lower, right? What more negative can you get right now on Snapchat?”
Shares of Snap were down more than 3.4 percent at Wednesday’s close, and down more than 70 percent from the close of the company’s first day of trading in March 2017. But Left warned investors not to turn away from the stock just yet.
“If you have kids that use Snapchat you’ll know how much they actually do use Snapchat. And you still can’t say it’s dead,” Left said. “There’s 180 million people out there, young ones, who are using Snapchat.”
He said he hopes CEO Evan Spiegel will open up to partnerships and an eventual sale, saying he thinks buying Snap would be “a no-brainer purchase for Amazon.”
“The crazy part about it, with Snapchat, it’s always been an issue, ‘would he sell the company?’ Not, ‘could they find a buyer for the company?” Left said.