Snap, owner of messaging app Snapchat, received top ratings from a number of its initial public offering (IPO) underwriters on Monday, sending its shares up more than 3% in premarket trading. Snap had a red-hot debut on March 1 in what was the largest listing by a technology firm in three years. However, many investors have been critical of the company’s lack of profitability and decelerating user growth. At least six brokerages, including Morgan Stanley and Goldman Sachs, rated the stock "buy" or higher, citing the company’s long-term growth in a highly competitive market. As of Friday’s close, the stock had risen nearly 34% from its $17 IPO price. The stock was trading at $23.52 before the bell on Monday. The Los Angeles company’s app, which allows users to share short-lived messages and pictures, is popular with young people but faces intense competition from larger rivals such as Facebook’s Instagram. Snap has warned it may never become profitable. "Snap’s engaged/hard-to-reach ...
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