The pressure drops to a record level after the analyst said that he was "run out of money" (SNAP)

Getty / Michael Kovac

• Snap slips Tuesday after Michael Nathanson, an analyst at MoffettNathanson, would have lowered his price target, saying the company "was running out of money quickly."
• Last quarter, the social media company announced the first decline in its number of sequential daily active users and said that its cash consumption had increased in the second quarter.
• CEO Evan Spiegel recently sent an internal memo acknowledging that the company had been too fast in 2018 and paved the way for profitability in 2019, but Nathanson remains skeptical.
• Watch Snap transactions in real time here.

Snap shares fell more than 4% early Tuesday, reaching a record low of $ 7.15, after Michael Nathanson, an analyst at MoffettNathanson, lowered his price target from $ 8 to $ 6.50, claiming that the social media company "was running out of money".

According to Nathanson's calculation, Snap needs a capital increase between the middle and the end of 2019, according to StreetInsider.

Snap's second-quarter results, released on August 7, showed the company was above the highest financial results, but was experiencing its first decline in the number of sequential daily active users. . In addition, the company cash consumption climbed to $ 234 million from $ 229 million in the same quarter of 2017.

The decline in the user trend "is mainly due to a slightly lower usage frequency among our user base due to the disruptions caused by our redesign," said CEO Evan Spiegel, when 39, a telephone conversation with the analysts.

In February, Snapchat released a controversial redesign of apps that provoked negative feedback from users, including celebrities such as Kylie Jenner, who tweeted. to its 24.5 million followers, "Sooo does anyone else open Snapchat anymore?" The main complaint was the separate remaking of Snapchat's celebrity stories from those of your friends. Jenner's tweet erased more than a billion dollars from Snap's market cap in one day.

Last week, Spiegel sent an internal memo of more than 6,500 words, acknowledging that the company had been too fast in 2018 – specifically referring to Snapchat's controversial reshuffle – adding that Snap hadThe heart of what has made Snapchat the fastest way to communicate. "The internal memo described the general corporate objectives for 2019, including: accelerate revenue growth and generate positive free cash flow and profitability for the year.

Commenting on Spiegel's internal memo, Nathanson, according to StreetInsider, said that he was "skeptical" and that he "did not trust Snap's leadership to navigate these rapids".

Snap was down 51% this year to Monday.

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