Tag Archives: Facebook

The king of social media is still Facebook with its 2 billion user base and Snapchat need growth

There is not doubt that the king of social media is still Facebook. But Facebook is not only Facebook. In addition, you have Instagram, WhatsApp and Messenger which means that Facebook accounts for four of world`s largest social media and messaging services.

But what about Snapchat? The stock has declined since it went public and the value of the company is only half of what it was from start. Not only that; Snapchat is far away from its competitors when it comes to MAU`s.

Snapchat has problems. The company is not growing and that will in the long run affect the workers. Some will be frustrated and quit, and that`s the fact right now. The company is laying off employees in one of its most important divisions.

Snap lost high-level executives last year and one of them was Tom Conrad who came from Pandora to join Snap back in March 2016 where he was the music-streaming company`s chief technology officer.

Engineering chief Tim Sehn was resigning the same day that Snap reported dismal third-quarter earnings results. The stock fell more than 5% in one single day when the company announced that their vice president of product is leaving Snap.

On top of that, their competitor Twitter announced they were working on a Snapchat-like video sharing app to compete with Snapchat. Having competitors like Twitter and Facebook with the same core business in a market like it is today is heavy.

So far in their short-lived life, they have faced a lot of challenges. Having executives leaving the company in early stage is one thing, but their redesign has also been negative, and the feedback from their own customers have so far been very negative.

Snaps redesign has made it harder for people to view Stories and that means fewer Snap Ad impressions. Snapchat has «only» 178 million MAUs and thats far away from the social media king. In comparison; Twitter have 330 million MAUs and Pinterest have 200 million.

Snap developed a self-serve platform for buying Snap Ads and that resulted in lower average ad prices. Marketers can now bid what they see as fair value for Snap Ads. At the time when Snap announced the app redesign, Spiegel said, «There is a strong likelihood that the redesign of our application will be disruptive to our business in the short-term.»

Facebook`s giant user base of more than 2 billion enables it to fend off any competition. They continue to expand in North America, Europe and Asia and the rest of the world, so future are still looking bright.

Facebook is set to report fourth-quarter 2017 results on January 31, 2018, and the strength in online and mobile advertising revenues, in addition to expanding Instagram user base will drive top-line and earnings growth.

Snap is expected to report earnings on February 6, 2018 after market close. Earnings forecast for fiscal quarter ending December 2017 is $-0,33.

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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Snap Inc is in free fall and can end up like Twitter without any usergrowth

The shares of Snap Inc was a success in the beginning of its IPO. Just like many other IPOs. But now, the story is different. Snap Incs stock has seen a big selloff for weeks now, and the price has fallen down to $13,65 after reaching a top of nearly $30 on high volume.

The market cap is $15,99 billion, which means the company has lost about $16 billion of market cap so far. To put that number in perspective: Twitter is worth about $12 billion. GoPro reached nearly $90, but now GoPro stocks is trading at about $10. Snap has lost about 10 GoPro companies. That`s a lot.

 

 

How can Snap survive in a market like it is today? Facebook is the biggest rival and they have more than 2 billion DAU`s while Snap has about 173 million. The question is why people should sign up to Snap when they know they have the same tools on Facebook?

This is what investors are looking for. How many DAU`s is it and are the number rising or declining? Quarterly revenues per user grew per user by 180% during Q1. People spend about 30 minutes vs 25 minutes it highlighted prior to its IPO.

Investors should know that there are a normal situation when an IPO stock is falling like Snap Inc. First of all, it is the lock-up expiration which means about 1,2 billion of Snap stocks will be available for sale in the near future.

Many Snap stocks are owned by VC`s and Executives, but it is a bad sign when insiders are selling their own stocks in their own company. On top of that you have short sellers. This is why Shares of Snap Inc fell about 23% in July. But not only that.

Profits are more important than users and users gives profits. Right now you shouldn`t mearsure the value of the company by users but by profit. If you do that, the stock will fall below $10 and end up similar to Twitter which is having the same problem; user growth.

Snap Inc was a bubble that burst with just 166 million DAUs compared to Instagrams 250 million. It`s funny to see that Snap is worth more than Twitter. How is that possible with only $150 million in revenue for the quarter?

Snap is also burning a lot of cash. They earn $150 million and spend more than $200 million.

Analysts are concerned about Snaps volatile growth and the fact that Snaps insiders would be able to unload some of their shares after a lock-up period expired at the end of July. Snap`s underwriter, Morgan Stanley, downgraded the shares from overweight to equal weight.

Snap Inc is expected to report earnings on Thursday, and investors need impressive results to be convinced about their marketing strategy in the future. A big surprise like that can also stop the negative sentiment at the moment.

Snap Inc will report earnings on 08/10/2017 after market close. Earnings forecast for the quarter is $-0,29 vs $-2,31 in May this year.

 

 

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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Instagram`s audience is growing much faster than Facebook`s and Instagram can be Facebook`s best growth engine

Mark Zuckerberg and Facebook started its business 13 years ago on February 4, 2004. Many things have happened since then, and Facebook are now among the biggest corporations with its 2016 Revenue of US$ 27,638 Billion. The success continues.

The social media giant are growing like never before. Ad revenue grew by 51% YoY in Q1 2017. It jumped from $5,2 Billion to $8,85 Billion. Total revenue climbed 49% and earnings went from $0,60 to $1,04.

 

 

It is a big surprise for many to see that Facebook is still adding DAUs and MAUs (active users). Monthly active users have jumped to over 2 billion and their revenue will follow. Many companies are trying to take Facebook`s throne, but the giant are very strong and knocks off all challengers.

Snapchat is the latest challenger, but Facebooks Instagram seems to be strong in this market and will also contribute to Facebooks revenue growth. Instagram has over 700 million MAUs and 400 million DAUs.

Instagram is integrated in the social media business model and they have been selling ads for four years now. Instagrams audience is growing much faster than Facebooks audience and Instagram can be Facebook`s best growth engine.

Instagram is not the only growth engine of Facebook. They also have Messenger, WhatsApp and Oculus VR, and their next step will be to compete with YouTube.

Investors love the social media giant. In January this year, Facebook`s shares were trading at $115 per share and on Monday their shares were trading at $166 per share. The giant have jumped over 40% so far in 2017. Compare that to the rise in the benchmark S&P 500 index during the same period and see for yourself.

Facebook Inc is expected to report earnings on Wednesday 26 after market close. The report will fe for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $1,13 which is a big jump from $0,76 in the same quarter last year.

Like.

 

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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Microsoft and Baidu plan to explore opportunities to deliver connected vehicle solutions

Microsoft is still among the biggest corporations, but far away so «hot» as the FANG stocks that everyone is talking about at the moment. With its market cap of $569,85 billion, Microsoft is still among the best and biggest companies.

Microsoft Corporations is expected to report earnings on Thursday after market close. The report will be for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $0,71 which is a bit more than last years earnings of $0,69 for the same quarter.

 

 

IBM is trying to give its cloud business a boost, but Microsoft`s open cloud format seems to be much better. A business that is giving Microsoft a huge upside. Azure and Xbox is two drivers for Microsoft at the moment, but there is more.

Who is talking about LinkedIn? Only a few. Reid Hoffman sold his «baby» to Bill Gates and Microsoft acquired the professional networking platform in an all-cash deal worth $26,2 billion in December last year.

Microsoft`s CEO Sataya Nadelia said at that time “The deal would bring together the worlds leading professional cloud with the worlds leading professional network.”

In addition; Microsoft wants to compete with Apple and Alphabet in delivering its self-driving car platform. They will collaborate with China`s search engine giant Baidu to use its Azure services for those self-driving cars.

Microsoft said in a press release on July 18, that Baidu and Microsoft plan to explore opportunities to deliver connected vehicle solutions and unique customer experiences that aim to digitally transform the autonomous driving industry.

Microsoft is focusing on cloud-connected car scenarios via its «Microsoft Connected Vehicle» strategy, and the company is aiming to get more vehicles to use their cloud services, like Office 365 and Azure, instead of using Microsoft itself inside cars via «Windows Automotive.»

Other Automotive brands are also interested in Microsoft`s cloud business. BMW and Volvo have both announced partnerships with Microsoft for its cloud-business car services.

Microsoft closed its previous trading session at $73,86 and is expected to report earnings on Thursday after market close.

 

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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Investors are concerned about Snapchat`s future

Snap Inc, formerly Snapchat Inc, is a camera company. The company`s flagship product, Snapchat, is a camera application that helps people to communicate through short videos and images as a Snap.

As of December 31, 2016, on an average, 158 million people used Snapchat every day to Snap with family, watch Stories from friends, see events from around the world, and explore curated content from publishers.

The market cap of Snap has fallen dramatically from about $30 billion to $20 billion.

 

 

Many investors are now concerned about Snaps DAUs. Not only that; Snapchat has a lot of competitors and to understand that you have to see it with marketers glasses. They are a copycat and have much lower margins than their competitors.

Facebook has the same application and makes Snap tools like a «me too» product. What they need now is International growth, but why should people use Snap`s tools in an already developed market?

Advertisers spend their money on Facebook and YouTube because they know it works. If Snap want to compete with them they need to burn some cash. A lot of cash. What they need is to look overseas to grab more teens.

Snap dropped down -3,19% on Tuesday and its valuation is about $20 Billion, trading at 17,31. The stock is back to its IPO price and it’s headed for a cruel summer for Snap. In comparison, Twitter`s market cap is about $12 Billion and I assume you know the rest of that story.

Investors are worried about Snaps competition. Especially from Facebook`s Instagram which is the same kind of its popular features.

Snap opened at $24 on its initial day of trading back in March, but surged 44% by the close. They started the IPO price at $17 and now we are back to the start again. At $17.

Barclays, Citygroup and J.P Morgan have lowered the price target on Snap.

 

 

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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