Citron Research Initiates Coverage on Snap Inc. Target Price $17
Time to Spook the Shorts who have overstayed their welcome
Over 17 years, Citron has battled companies with questionable business models, fraudulent practices and companies that are otherwise overvalued. However, staying short a stock where negative catalysts and news flow are baked in is a recipe for disaster that is often coupled with an inability to look past the headlines. We have seen this setup too many times and we have even fallen victim to it, but not this time!
For the past 4 months, Snap Inc. has been a wonderful short as the company has suffered from a controversial redesign, a disappointing quarter, and management which held a conference call that Jim Cramer likened to an SNL skit. And Snapchat’s stock has the scars to show it, being down almost 50% over this period.
Shorts even received a $1.3 billion gift from Kylie Jenner when she tweeted that it was so sad that she does not even open Snapchat anymore (because of the redesign).