>> The road after launching an initial public offering, anything but smooth for Snapchat parent Snap Inc after the biggest tech IPO in years. Snap shares getting whacked Tuesday, trading below their $17 IPO price. Morgan Stanley, the lead banker on the IPO, taking the rare step of trashing a stock it brought to market.
Cutting its rating on the stock saying, quote, we have been wrong about Snap's ability to innovate and improve its ad product this year.
Blue Apron also a reminder that once red hot investments can quickly go cold. Shares of the online meal kit delivery company tanking Tuesday, further below its IPO price. Investors quite doubtful about the company's prospects as marketing costs pile up, rivals multiple and Amazon looks to change the game by purchasing whole foods.
And the reverberations are being felt throughout the startup world. Humans resources software firm Zenefits, food subscription company, Hello Fresh, and ride service, OLA, have had their valuations slashed because of poor performance and weaning investor enthusiasm. That's contributing to heightened caution in the startup industry over the last several months that the flow of easy money may be drying up.