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It was not an instant decision.
In order to attract new users, Snap has undergone a series of design changes, among other things, but increasing competition from Facebook and Twitter, as well as a number of top-level executive departures have continued to weigh on the stock for a year.
Mark Tepper of Strategic Wealth Partners said that he would not be buying Snap until the company proves that it can appeal to a larger number of users.
He said that the product is "cool" and that it is "the most preferred social networking program for teens", but the problem, according to Tepper, is that teens are not the ones who have the # 39, money to spend. This means that the platform is less valuable from the point of view of advertising.
"[T]The eenagers do not have the deepest pockets and they [Snap] are really struggling to attract the crowd of over 35 years. These are the people who have the power to spend, "he said, adding that"
The title would be "intriguing" at $ 6, said Tepper, but for now, and after soaring prices, he said it was a tough name to take.
Disclosure:
CNBC parent company NBCUniversal invests in Snap
.
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