San Francisco Oct 10 (IANS) Photo-messaging app Snapchat s parent company Snap shares fell to an all-time low after an analyst commented that the company may run out of cash by 2020.
Snap shares tumbled more than six per cent on Tuesday after a Wall Street analyst said the Snapchat parent was "in danger of running out of cash by 2020" NYpost.com reported.
Last week Snap CEO and Co-Founder Evan Spiegel told employees in a 15-page memo that the company is gunning for "full-year profitability" in 2019.
Instead Snap is poised to fall "woefully short" of that goal losing a projected $1.5 billion next year according to Michael Nathanson of research firm MoffettNathanson.
Snap is not only "running out of money" but also lacks "options to rectify its cash burn problem " Nathanson was quoted as saying.
After dropping as much as 8.6 per cent to bottom out at an all-time low of $6.84 per share the social media company s stock recovered to close at $7 -- 59 per cent below Snap s IPO price of $17 per share in March 2017.
Nathanson called Facebook the cause of Snap s woes -- the result of its having "unashamedly copied promising product features such as Stories and deployed them across its platform."

--IANS vc/na/bg