Snap‘s poor leadership is among the reasons the social media stock has tanked more than 50 percent since last year’s initial public offering, CNBC’s Jim Cramer said Wednesday.
“I don’t even know what to say about Snap,” Cramer said on “Squawk on the Street.” It’s that bad.”
Cramer’s charitable trust owns shares of social network Facebook. Snap did not immediately respond to CNBC’s request for comment.
Snap, parent of Snapchat, went public in March 2017 after being priced at $17 per share.
On Day 1, the stock closed up 44 percent at $24.48 per share. But it quickly turned lower, with analysts flagging widening losses, slowing user growth, and lack of voting rights for outside investors.
Problems at Snap arguably got worse when Facebook-owned Instagram rolled out new features that were similar to Snapchat, including disappearing photos and videos as well Instagram Stories.
Cramer said Wednesday he has a particular problem with Snap’s board, though the “Mad Money” host has been highly critical of Snap and its co-founder and CEO Evan Spiegel many times before.
In April, Cramer cautioned investors against buying Snap despite its app redesign, saying the company wasn’t growing fast enough and its expenses were too high.
“These guys were spending money like a boatload of drunken sailors,” he said at the time.
After Snap’s post-earnings call in May, Cramer said he was unimpressed by the performance of the company’s leaders, and compared the call to a SNL sketch.
“I thought this was a ‘Saturday Night Live’ parody of a conference call,” Cramer said on May 2, referring to the long-running NBC program. “I just didn’t think it had anything like a real conference call.”