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Facebook changes its name to Meta

The social media universe is about to change. Facebook is still the King, but they face competition. One of them is Trump and his new Media company that will launch next month. But the internet itself will also change. That`s why Facebook change its name.

At the annual Connect conference on Thursday, CEO Mark Zuckerberg announced that Facebook will change its name to «Meta.» But note that it is not the app, but the company that is changing the name.

The name is meant to evoke the new focus on building the metaverse, what Meta envisions as the natural evolution of the internet where users interact using all sorts of devices from AR to VR and even the best Android phones.

One of the main reasons why Zuckerberg is doing this is to separate the company from the social media app, and better envoke the various platforms and projects Meta is involved with beyond Facebook.

Facebook is more than just a social media app, and therefore the change to Meta. This is similar to what Google did when they changed their company name from Google to Alphabet. Facebook`s vision is to connect people whether through WhatsApp, Instagram, or its VR platform and their popular Oculus Quest 2. So, it`s not just a social media company anymore.

Alphabet changed its name and made its businesses cleaner and more accountable. So is Meta. Reality Labs, which is responsible for the company`s VR/AR efforts, will be reported separately from the company’s other products. This will allow investors to better track the progress being made as Meta continues to advance these experiences.

It has been a lot of noise around Facebook recently, and they are accused of having a harmful effect on teens. Changing the company name from Facebook to Meta won’t change anything. Facebook as a social app will remain the same.

That being said; Facebook is NOT DANGEROUS or HARMFUL. People are!

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com 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. Shinybull.com 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 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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Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices

Snap Inc is set to report second-quarter earnings after the market closes on Tuesday August 7. Historically, the company makes big moves in the wake of its quarterly reports. The average single-day price swing is about 24 percent regardless of direction.

Both Facebook and Twitter faces a challenging time. So do Snap Inc. GDPR pushed Facebook`s user counts down compared with the first quarter and that will also impact Snap Inc. Snap is a small company compared to Facebook, and they will not deal with the same level of scrutiny from lawmakers as Facebook.

EPS in March 2017 came in at -$2,31, but have since then been far better with -$,030 a year later. Analysts on average project Snap second-quarter revenue of $250,4 million, up from $182 million in the same quarter last year.

Facebook have the same tools as Snap and that is hurting their profit. Their biggest competitor is also Instagram which makes it difficult for them to be unique. But Snap launched the second version of its Spectacles product, sunglasses that let people take photos and video and use them within the Snapchat app.

This is also the only move that live up to its claims in the SEC filings that Snap Inc is a camera company.

Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices. Not good in the short run because Snap have only 191 million DAU`s, an increase of 4 million from the Q4 but below estimates of 194 million.

The company has also struggled with the impact of a product redesign in February that was widely criticized. That didn`t help the stock price that crashed to a record low on May 2 after it reported first-quarter earnings.

They missed views on revenue, user growth and several other key metrics, and analysts slashed price targets. The IPO was held in March 2017, and pricing shares were $17. It went up 2,5 percent on Monday and ended the session at $13,05. The stock is down 11 percent in 2018.

Will Snap Inc take a hit from the implementation of Europe`s GDPR (General Data Protection Regulation)? The same types of issues that led to big declines for Facebook and Twitter.

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.

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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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