Tag Archives: Evan Spiegel

Snap Inc was a bubble but is now down to a normal level again

Snapchat was a big bubble when it went public in March last year. It went straight up to about $27, but the story has so far been a disaster. The stock has plummeted. It closed at $6,59 after the bell on Wednesday, down -3,37 percent.

Snap is losing money, and they still have negative user growth. Two things investors don`t like at all. The company will report earnings on Thursday 25, and the reported earnings for the same quarter last year was $-0,32.

If we compare Snap with Facebook and Twitter, the company is now down to earth again. But when it comes to popularity, Instagram is more popular among teenagers than Snapchat. A survey found that 85 percent of teens use Instagram at least once a month. 84 percent use Snapchat.

The company have 188 million Daily users and most of them is kids. Snaps CEO Evan Spiegel admitted the company rushed the redesign, and they didnt spend enough time to test the new platform. It all ended up with angry users.

Snaps market capitalization also fell by about $12 billion after a bad ad campaign with Rihanna. She used Facebooks Instagram to complain about the ad with Snap.

Snap need to report a growth in DAU`s to lift the stock again. A decline in their DAU can make the trend to continue. What we know so far is that this stock is very volatile and you can see how the stock jumped in February and June this year.

Snap Inc is expected to report earnings on Thursday 25, 2018, after market close. The report will for the fiscal Quarter ending September 2018. Earnings forecast for the quarter is $-0,27. Better than last years earnings at $-0,32.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The parent of Snapchat are going public

Snapchat is one of the biggest favorite apps in the social media universe at the moment. Its founders Evan Spiegel and Bobby Murphy filed confidentially to go public with SEC late last year, and now they are ready to be traded on the New York Stock Exchange under the ticker SNAP.

Snap`s revenue rose to $404,5 million, which is eight times higher than their revenue in 2015. In Q4 Snap had 158 million daily active users (up 48%), and many of my friends and family members are one of them. 2,5 billion Snaps are created every day.

 

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Snap Inc is a camera company, and in the SEC filings they say: “We blive that reinventing the camera represents our greatest opportunity to improve the way people live and communicate.

Our products empower people to express themselves, live in the moment, learn about the world, and have fun together».

Worldwide advertising spend is expected to grow from $652 billion in 2016 to $767 billion in 2020. The fastest growing segment is mobile advertising, which is expected to grow nearly 3x from $66 billion in 2016 to $196 billion in 2020.

Snap belive that one of the major factors driving this growth is the shift of people`s attention from their televisions to their mobile phones. According to Nielsen, people between the ages of 18 and 24 spent 35% less time watching traditional television in an average month during the second quarter of 2016 compared to the second quarter of 2010.

A huge difference between Facebook at Twitter is that Snap Inc doesnt have their own server farm, which makes it more expensive which means Snaps earnings can look much lower that those who have their own server farm.

Snap Inc lost $514 million in 2016, which is up from about $373 million. Some of that money goes to Google because Snap Inc rents storage and server space from them. New legislation that would change U.S, or foreign taxation of international business activities or other tax-reform policies could also seriously harm their business.

Benchmark Capital owns about 10% og the company. Lightspeed Venture Partners owns 8,3%, and Institutional Venture Partners owns 4%.

Snap are looking to raise up to $3 billion, and Snaps offering is being led by Morgan Stanley and Goldman Sachs. Morgan Stanley won the desired «lead left» position on the prospectus. The bank also led Facebooks initial public offering.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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