Snap Inc.’s stock took a massive hit following a significant rally, leaving analysts puzzled by the rollercoaster ride of the company’s performance. The stock plummeted by 30% in Wednesday’s trading, marking a stark contrast to its previous surge. MoffettNathanson analyst Michael Nathanson expressed his dismay, comparing the experience of covering Snap to one of the least enjoyable in his career as an analyst, drawing parallels to the challenges faced while covering Twitter.

Nathanson attributed the perplexing investor behavior to what he deemed as ‘the definition of insanity,’ whereby investors repetitively anticipated different outcomes from the company. He pointed out the pattern of Snap’s stock bottoming out at $9 after the last earnings report, only to nearly double in the subsequent months, indicating a cycle of optimism that the company would overcome its challenges.

However, Nathanson remained skeptical about Snap’s competitive position and financial prospects, especially in the face of increasing competition from major companies with AI-enabled product solutions. He maintained a neutral rating and a $8 target price for the stock, emphasizing the difficulties in envisioning a substantial improvement in Snap’s standing.

Following the disappointing earnings report, Snap’s stock witnessed a sharp decline of over 30% during Wednesday’s trading, marking one of its most significant single-day percentage drops since July 22, 2022. Bernstein analyst Mark Shmulik described the stock’s movement as ‘violent,’ underscoring the stark contrast to the previous doubling of the stock within the quarter.

Shmulik acknowledged some signs of progress in Snap’s report but highlighted that there are still substantial areas that require improvement. The company’s decision to reduce its workforce by about 10% further raised concerns about its trajectory, indicating persistent challenges that continue to plague the company.