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5 Stocks Cheaper Than Snapchat
Snap Inc. ($SNAP) stock plummeted more than 28% in the past day. The massive drop has seen a flood of articles and videos urging investors to “buy the dip” and take advantage of of a potential rebound opportunity.
This type of content pops up whenever a company’s share prices implode.
In today’s article, I want to tell you why “buying the dip” on Snapchat isn’t worth it. And, I want to share five superior companies that are actually cheaper than Snap stock.
Why Snapchat Stock Is Still Expensive
Snapchat stock is down 85% in the past year, falling from over $77 per share, to just under $8.
“Wow,” some might think, “this company has gotten so inexpensive that I could buy now and make money off any recovery. Even if shares only hit $10, I’d be up 20%!”
Theoretically true.
But Snapchat stock still trades at an exorbitant PE ratio of 60.
When you spend $7.76 on one share of Snapchat, you’re only getting $0.13 of company earnings. On a PE basis alone, this stock could fall a lot further. For example, if Snap contracted to a PE…
