I Think Snap Deserves to Crash and Burn

 | Jul 11, 2017 | 10:28 AM EDT
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Time is precious right now, so I will be brief.

I reiterate from prior statements made since Snap (SNAP) went public that the stock remains a dog with very bad fleas. And you don't have to look far to understand why Snap shares closed below the IPO price on Monday, and analysts remain silly bearish.

First, Snap was constructed as anti-shareholder. Why place your faith in a company that may not have your best interests in mind? Second, there is mounting evidence that Snap is slowly falling out of favor among the young people that shot it to fame. And finally, Facebook (FB) has a damn near monopoly on social media that makes investing in Snap seem beyond dumb. 

Meanwhile, there's also the share lock-up expiration to consider, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, pointed out on Monday.

Some 711 million shares could come unlocked later this summer. If they do, that influx of supply could weigh on the stock price. 

If you need more reasons than that, it may be time to take a few free investment classes at the local library. Cheers!

Snap is struggling.

What's Hot On TheStreet

Watch out, Apple: Louis Vuitton Tuesday unveiled its first smartwatch coined the Tambour Horizon in a bid to cut into Apple Inc's (AAPL) hold on the wearables market, TheStreet reports.

The watch was made in conjunction with Alphabet's (GOOGL) Google and Qualcomm Technology (QCOM) and starts at a lofty $2,450. It works with both Apple and Android devices, and is the first Android Wear smartwatch that functions in China.

 

ちょっと欲しいwww #louisvuitton #tambourhorizon

A post shared by @yu9ki on

Yes, it's Amazon Prime Day: Although many probably have Amazon (AMZN) Prime Day fatigue right now, that doesn't mean they won't be spending aggressively on big digital deals. Amazon stands to ring up more than $2 billion in sales worldwide during the 30-hour sale known as Prime Day, Internet Retailer predicts. The gain would mark about a 21% increase from a year ago. U.S. sales alone are pegged at $1.56 billion, up 20% from last year, TheStreet reports.

Meanwhile, TheStreet highlights an analyst calling Amazon shares reaching $3,000 in your lifetime. Yep.

Bitcoin has crashed: Traders that have ridden the wave higher in Bitcoin via crypto-currency plays such as Advanced Micro Devices (AMD) and Nvidia (NVDA)  may want to reconsider their bullishness. Bitcoin prices entered bear market territory Tuesday, TheStreet reports, as an embarrassing legal case kicked off in Japan and experts continue to squabble over key changes to the crypto-currency's infrastructure.

Bye-bye regulations: President Trump late Monday nominated former Treasury official Randal Quarles as the Federal Reserve's top bank supervisor. As TheStreet's Ron Orol reports, the nomination could lead the way to a dismantling of many Obama Administration bank regulations and is one that is expected to send a positive signal for now to big and regional bank stocks. Orol points out that the appointment could boost bank stocks such as Bank of America (BAC) , Wells Fargo (WFC) , Citigroup (C) and Goldman Sachs (GS) in the near term.

Apple, Alphabet, Wells Fargo and Citigroup are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL, GOOGL, WFC and C? Learn more now.

Visit here for the latest business headlines.

___________________________

Eat, Drink and Talk Money with Jim Cramer

Meet Jim Cramer at an exclusive reception at his Bar San Miguel in Brooklyn, N.Y., on Tuesday, July 25, from 6:30 p.m. To 9 p.m.

The evening will start with a screening of Jim's CNBC show Mad Money. Afterwards, Jim will join the party fresh off of the CNBC set to mingle, take photos and answer your investing questions.

Tickets include dinner, drinks and an autographed copy of Jim's book Get Rich Carefully.

Click here for more information or to buy tickets.

Where: Bar San Miguel, 307 Smith St., Brooklyn, N.Y.

When: Tuesday, July 25, 6:30 p.m. to 9 p.m.

Cost: $395 per person.

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