Today’s Stock: Snapchat(Snap)Today’s Stock: Snapchat(Snap)
The “vanishing” messaging platform that took the world by storm in the early 2010s. Released other projects like spectacles and a drone which both flopped. Mostly focused on their messaging and media app.
Poop
My Thoughts 💭My Thoughts 💭
I was a huge Snapchat user and fan for a long time! I used the app extensively to document my life through its stories and other features. It essentially replaced Facebook in my life. I also had a drone, which was cool, but they recalled those and refunded me the full amount.
However, as I got into bitcoin and cared more about my privacy I stopped using the app.
Due to Silicon Valley’s tendency to copy other companies’ successful features (like Facebook’s Snap Stories), Snapchat was never able to grow to the size of Meta.
Snapchat introduced Snap+, which offered users a few extra perks, but I don’t think it gained much traction. Snap should have removed ads for its content for Snap+ users. It felt ridiculous to pay for Snapchat and still have to watch ads.
In my opinion, Snapchat should have been the TikTok of the United States. They completely missed that opportunity and are now stuck in a difficult position for their business. They can’t grow or compete effectively.
At 9.1k sats per share ($88,402), and no dividend investors must believe this company can still grow or start paying a dividend up justify owning this stock.
At a -27 PE investors are paying $27 to access $1 of losses as this company still isn’t profitable!!
PE:PE:
Expected Growth:Expected Growth:
Revenues and expenses:Revenues and expenses:
Balance Sheet:Balance Sheet:
Dividend:Dividend:
No dividendNo dividend
Bitcoin per share:Bitcoin per share:
NoneNone
Ownership breakdown :Ownership breakdown :
Leadership:Leadership:
This business is poorly managed, which is why its stock price is set for bankruptcy at under $10 per share.
The company is expected to grow at a 50%+ clip, but its past earnings reports have failed to demonstrate this. The balance sheet is in decent shape, and while the board is relatively young, I find it hard to believe they are paying the CEO $3.3 million to lead this struggling business.
Retail owns 21% of the float! Holding on hope and a prayer!
I have a soft spot for Snapchat because of its impact on my life, so I always check the stock price, hoping they will finally succeed. But success is still far in the future analysts are predicting that the company will BREAK EVEN in 2028!
No one should waste their sats on this company. A disappearing messaging app is not essential for the world to thrive. Moreover, Snapchat cannot compete with WhatsApp or Signal. Signal has more significance to the world than Snapchat at this time due to the attack on privacy.
As I have mentioned before, quoting Saylor for zombie companies like Snapchat, they should adopt a Bitcoin strategy to help grow their business. Otherwise, they will continue to be dominated by Meta and TikTok, with no clear path for growth.
Why would we want this company around if it's dead though? If the market cannot pick losers because all the loser companies become Bitcoin Treasuries, then Bitcoin will be the currency of losers.
My counterproposal: direct any time otherwise spent on convincing Snapchat to become a treasury company, towards Elon to accept Bitcoin payments for Starlink.
Well I am thinking about innovation. Like imagine Snap had a dev like Koob and they bought $500M of bitcoin and told the dev team to integrate bitcoin into the Snap ecosystem
Who knows what they can develop it might work it might flop but it’s worth a shot.
What if they make a killer Wallet fully integrated with an LSP like Zeus
They can do all that without being a treasury company at start, and just build up their reserves from their LSP earnings.
Proof of work, not proof of printer going brr!
Not burr they gave cash and cash like equivalents on their balance sheet now.
Not all treasury companies are doing it the MSTR, NAKA way. They could easily take some of their balance sheet and buy Bitcoin with it and integrate into their application
You can develop the entire thing before you buy Bitcoin for your LSP (or maybe a fedimint thing?) where you dev on mutinynet until you have something you can launch.
Any innovation in a privately owned product is always 3 sprints away from MVP (because if you can't do it in 3 sprints, you can't do it)
Yeah! Snapchat has network effect. If they were to use bitcoin it could be a major growth driver.
But the growth might be slow but that’s okay if bitcoin protects the balance sheet
But my initial point was that if only losers buy bitcoin, then eventually Bitcoin will go to zero and it offers no protection. We want successful people to be in Bitcoin, not losers. This is actually rather important; losers have network effect too!
Yeah but today’s winners could be tomorrow’s losers! Haha we never know who will win or lose in the long run.
"It felt ridiculous to pay for Snapchat and still have to watch ads."
Jesus. I feel it's ridiculous to pay to not watch ads.
I had no idea Snap was still around. Surprised they didn’t get gobbled up by a bigger tech company solely for their data.
Good point but one must ask how much of that data is new versus data they already have?