Excited to see this horribly managed company report today (Consensus EPS -.33). From the company that brought you creepy, ugly, hipster, glasses, there’s good reason it trades below its IPO.
I covered my SHORT, but I wouldn’t be surprised if it tanks to the $11-12 zone.
But of course, the real problem with SNAP is there’s no real direction in the company overall. Their business model feels more reactionary, as in reaction to the competition, and the two competitors are not easy to contend with – Instagram and Facebook. SNAP is more suitable as a buyout company to be honest, but as a fan of tech, I rarely like buyouts, I would rather they grow inorganically from creativity. And so secretly I’m hoping for this company to succeed and impress. Until then, as long as I refuse to buy tacky beach sunglasses, I can’t find myself buying this yellow tacky stock.
The real news will be in what new product they will be launching, which is obviously, or at least naturally should be, about augmented reality. How about SNAPchat + Pokemon? That would be a good way to market that steamy hot pile of depreciating face fecal wear. The kids would love to wear them and Snap/Catch a Pokemon. OMG hire me now.
Well I got this wrong. Totally wrong. Beat by 3 cents. Trending in the right way, but still a loss on earnings.
Nice intraday rally after the report. SNAP should benefit from Winter Olympics social media coverage.