Snap (NYSE:SNAP) pulled its guidance amidst business uncertainty. On the one hand, its user numbers are growing at a rapid clip by 20% year over year to 229 million. Indeed, Snap notes that its users were growing rapidly even before the lockdown, through January and February.

On the other hand, the advertising sector has taken a dramatic hit starting in March, and it has continued into April. Meanwhile, its shares continue to soar higher, as investors hang onto the idea that Snap's revenue growth rates are only temporarily slowing down.

Nevertheless, this unprofitable company remains substantially overvalued at more than 10 times trailing revenues and is best avoided until cheaper prices prevail. Here's why:

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