Snap Inc (SNAP) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Snap Inc.’s unique capital structure, exclusively listing non-voting stock, poses a tangible risk to its market valuation. Major index providers like FTSE Russell and S&P Dow Jones have policies that may exclude Snap’s Class A common stock due to its lack of voting rights, potentially diminishing its appeal to institutional investors. Such exclusions could lead to reduced liquidity and heightened volatility for the stock, threatening its price stability and investor attractiveness. The company’s inability to ensure inclusion in prominent stock indexes may continue to cast uncertainty on its market performance.
Overall, Wall Street has a Hold consensus rating on SNAP stock based on 9 Buys, 2 Sells and 21 Holds.
To learn more about Snap Inc’s risk factors, click here.