Snap slips below IPO price amid doubts over future growth

San Francisco

SNAP Inc shares fell below their initial public offering (IPO) price for the first time amid questions about the company's ability to grow as fast as initially expected and after recent declines in technology stocks worldwide.

The stock closed down 1.1 per cent at US$16.99 in New York on Monday, below the US$17 IPO price set on March 1 and having earlier slipped as low as US$16.95. To regain value, the company will need to prove that its advertisements are a must-buy, not just an experiment, and will need to keep innovating on its product as Facebook Inc copies its most popular features, analysts have said.