This Is Why Snap Shares Are Going to Plunge Even Further -- and Soon

 | Aug 07, 2017 | 10:50 AM EDT
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Snap Inc.'s (SNAP) stock is likely to remain a dog right into earnings this week and thereafter -- and it's not all due to insiders possibly getting ready to dump stock. 

No, it's that Wall Street is about to get yet another look into Snap's performance, and will probably come away holding their nose. Across the board, Snap appears ready to disappoint -- for example:

  • The bottom-line loss could be much larger than Wall Street expects due to stock compensation expenses and outlays to build out the platform. 
  • User growth will probably be a letdown, again, as Facebook's (FB) Instagram has continued to steal eyeballs. 
  • If sales miss, it will only fuel the debate on Snap's ability to monetize. 

All in all, Wall Street is unlikely to give Snap the benefit of the doubt on anything. The company is failing on its mission to be a camera company, it's failing to win the hearts of Wall Street and, by all outward signs, it's failing at staying a social media juggernaut. Not a backdrop for a rip-roaring stock rally.


Snapping at #SnapHQ ��

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Why Do You Still Own Tesla's Stock

Aside from Tesla (TSLA) revealing it's looking to bolt on $1.5 billion in net debt to its tattered balance sheet, there is something even more worrying that has developed. 

Tesla Inc. is lowering the price of its Model X SUV model by $3,000 to $79,500 before tax credits, which is the price the vehicle launched at two years ago.

The company said that improvement in efficiencies has led to improved margins for the vehicle.

"When we launched Model X 75D, it had a low gross margin. As we've achieved efficiencies, we are able to lower the price and pass along more value to our customers," Tesla said in a statement.

Not what you want to see from a supposed premium brand. Now go ahead and rake me over the coals, Tesla trolls. I eagerly await your tweets about perhaps the most-overvalued company in the entire stock market.

Facebook is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB? Learn more now.

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