Evan Spiegel

Evan Spiegel

The stock price for Snap Inc. hit a new low — falling 6.4 percent to $7 a share – after a report described the Santa Monica social media company as “quickly running out of money.”

Research firm MoffettNathanson warned that “running Snap’s business has been a significant cash drain. If the current cash burn holds, Snap will need to raise new funding in the back half of 2019,” according to the Los Angeles Times.

Snap has been hit with a number of setbacks recently, including stalled user growth, a redesign panned by many users and the loss of several executives, including the recent resignation of its chief strategy officer Imran Khan.

The MoffettNathanson comments follow a report on Cheddar of a leaked internal memo from Snap Chief Executive Evan Spiegel that said the company planned to “achieve full year profitability” by next year.