Wall Street Loses Patience with Snap

cageymaru

Fully [H]
Joined
Apr 10, 2003
Messages
21,471
Snapchat's parent company Snap was the darling of Wall Street when its IPO debuted in March 2017. Now the company faces issues with a revolving user base that engages with its content less, struggles to sell advertising on the platform, and a general lack of content that interests its customers. Wall Street analysts are now calling for the company to go private as Snap has "shed $20 billion in market capitalization" since its IPO. Other analysts are less positive about the social media company's chances and suggest that buying Snap stock at its all-time low is like playing the lottery. "If you do want to play it as a lottery ticket, you can do it that way. The problem is with lottery tickets, they can pay you a lot of money if you hit them, but more time often than not, you lose 100 percent of your money, and you have to be very careful. So on a technical basis it's almost unmarketable, and you really have to look at it on the fundamental basis and see how much cash they have on hand if they can really survive," Maley said.

"The data we look at is showing a widening user base, although one which is collectively reducing its time on the platform," said Brian Wieser, a senior research analyst at Pivotal Research Group, in an email to CNBC. "Our take is that it is not too late for management to find ways to reverse recent usage trends and generally improve monetization regardless of those usage trends. With ongoing experimentation, we have some faith that they should be able to do both." "At the same time, if they are unable to do so in the near term, the company could become an attractive candidate to go private with the stock's price at current levels," Wieser added.
 

Snowdensjacket

Limp Gawd
Joined
Apr 10, 2017
Messages
366
Snapchats primary userbase are 18 year olds who don't have jobs or money. What exactly are they going to advertise?
 

Usual_suspect

Limp Gawd
Joined
Apr 15, 2011
Messages
189
I’m shocked! This is perposterous! Analysts are dumb! /s

Seriously, a company with no stable guaranteed long term income being valued so high out the gate, and investors are just now figuring this out?

I usually gauge the popularity of an app on what my kids are using. They have this obsession about using the most popular social app, and Snapchat isn’t one they’ve used in quite some time.
 

TheOne&OnlyZeke

100% Irish
Joined
Jul 21, 2000
Messages
11,081
I'm not sure I know anyone that uses it.
I quit using it myself maybe 2 years ago
Dead platform
All Social Media sucks balls anyway
 

BSmith

[H]ard|Gawd
Joined
Nov 9, 2017
Messages
1,323
I look forward to the day the Internet is rid of Facebook, Snapchat, Twitter, and any other service remotely like them. It will signal the day people actually got smarter and that is a good thing.
 

sfsuphysics

[H]F Junkie
Joined
Jan 14, 2007
Messages
15,514
Kind of disgusting how much "value" is in the stock market for companies that dont actually make anything snd their income is derived solely by advertising. These companies shouldnt be classified as "tech" companies they should all be classified advertising companies because that is all they do.
 

BSmith

[H]ard|Gawd
Joined
Nov 9, 2017
Messages
1,323
Kind of disgusting how much "value" is in the stock market for companies that dont actually make anything snd their income is derived solely by advertising. These companies shouldnt be classified as "tech" companies they should all be classified advertising companies because that is all they do.

One day that ad bubble should burst. I cannot tell you the last time I saw an ad on the Internet. I am sure they are there, but I have become oblivious to them. Happens to enough people, well,...there goes that revenue.
 

Krazy925

Supreme [H]ardness
Joined
Sep 29, 2012
Messages
6,503
People use Snapchat for things other than dick pics? I’m legit surprised.

I’ve never had one and feel nothing of value has been missed. Most of my buddies use it to see naked women daily or something.

We’re not super high brow.
 

nilepez

[H]F Junkie
Joined
Jan 21, 2005
Messages
11,827
Snapchats primary userbase are 18 year olds who don't have jobs or money. What exactly are they going to advertise?
Advertisers prefer 18-34 year olds. And that group is hard to reach on TV. for most, that's how it was when they were young too.
 

nilepez

[H]F Junkie
Joined
Jan 21, 2005
Messages
11,827
I look forward to the day the Internet is rid of Facebook, Snapchat, Twitter, and any other service remotely like them. It will signal the day people actually got smarter and that is a good thing.
Well I suppose there could be a nuclear attack that wipes out all technology. Short of that, you won't live to see FB and Instagram die. Not sure about Twitter and I don't expect Snapchat to make it, unless a bigger company buys them out.
 

OpenSource

Gawd
Joined
Jun 24, 2008
Messages
877
Well I suppose there could be a nuclear attack that wipes out all technology. Short of that, you won't live to see FB and Instagram die. Not sure about Twitter and I don't expect Snapchat to make it, unless a bigger company buys them out.

I used to think this about AOL, Yahoo back in the day... But here we are.
 
  • Like
Reactions: Meeho
like this

nilepez

[H]F Junkie
Joined
Jan 21, 2005
Messages
11,827
I used to think this about AOL, Yahoo back in the day... But here we are.
Not me. Once broadband was a thing, it made no sense to pay for AOL (though many did for a time). Why pay AOL (an ISP) $20/month, when you're already paying an ISP 50 or 60 DSL (or cable)?

My Space is not Facebook. My space peaked at maybe 100 million unique users (but actual visitors/month was much less).
Facebook has Facebook has more than 2 Billion active users and a mountain of money. It's not going anywhere.
 

FrgMstr

Just Plain Mean
Staff member
Joined
May 18, 1997
Messages
54,075
Unfortunately once moms are on something the kids have already moved on.
Tell that to my 16 year old daughter and her huge friend group that use it everyday.
 

Meeho

Supreme [H]ardness
Joined
Aug 16, 2010
Messages
5,690
I’m shocked! This is perposterous! Analysts are dumb! /s

Seriously, a company with no stable guaranteed long term income being valued so high out the gate, and investors are just now figuring this out?
Still better than could be said about 99% of current Internet bubble companies. It will be a shitstorm when that bubble pops.
 

BSmith

[H]ard|Gawd
Joined
Nov 9, 2017
Messages
1,323
Not me. Once broadband was a thing, it made no sense to pay for AOL (though many did for a time). Why pay AOL (an ISP) $20/month, when you're already paying an ISP 50 or 60 DSL (or cable)?

My Space is not Facebook. My space peaked at maybe 100 million unique users (but actual visitors/month was much less).
Facebook has Facebook has more than 2 Billion active users and a mountain of money. It's not going anywhere.

Hard to believe there are that many narcissists out there.
 

nilepez

[H]F Junkie
Joined
Jan 21, 2005
Messages
11,827
Hard to believe there are that many narcissists out there.
Narcissists? Most of what I see are people talking about interests they share, family pictures and vacation pictures and these days politics. It's about as narcissistic as this forum. In fact, aside from pictures, it's not that different at all, other than there's more talk about technology here.
 

nilepez

[H]F Junkie
Joined
Jan 21, 2005
Messages
11,827
I’m shocked! This is perposterous! Analysts are dumb! /s
Seriously, a company with no stable guaranteed long term income being valued so high out the gate, and investors are just now figuring this out?
I usually gauge the popularity of an app on what my kids are using. They have this obsession about using the most popular social app, and Snapchat isn’t one they’ve used in quite some time.
Google lost money for roughly 3 years. I'm not confident that snapchat will make it, but that's how most IPOs work. One of the only tech IPOs that quickly turned profitable, that I can recall, is Facebook. They went public in May of 2012 and they were turning a profit by the end of the year.
 

BSmith

[H]ard|Gawd
Joined
Nov 9, 2017
Messages
1,323
Narcissists? Most of what I see are people talking about interests they share, family pictures and vacation pictures and these days politics. It's about as narcissistic as this forum. In fact, aside from pictures, it's not that different at all, other than there's more talk about technology here.

They are only talking to get attention. The less attention they get the more they talk. It is the entire "look-at-me look-at-me" generation. It is just a time waster.
 
Top