SNAPCHAT STOCK CRASHES! | Is it a BUY? | Summary and Q&A

TL;DR

Snapchat's stock has dropped to a new 52-week low, but it is trading at the price the company believed to be its fair value. The company's daily active user numbers have shown consistent growth, particularly in North America. However, Snapchat is currently not profitable and may take several years to become so.

Key Insights

• 🧚 Snapchat's stock is trading at its fair value, as determined by the company and Wall Street.
• 🌎 The company's daily active user numbers have shown consistent growth, particularly in North America, although growth has slowed down recently.
• 🌍 Snapchats' focus is on North America and Europe, where it generates the majority of its revenue.
• 🌸 The company's net losses are significant, and profitability is not expected for several years.
• 🛩️ Snapchat is used by only a small percentage of marketers, indicating potential growth opportunities in the advertising sector.
• 🔉 Compared to other social media platforms, Snapchat's audience retention is exceptional.
• ❓ The company's market valuation is currently around $20 billion, but without profitable operations, it may not justify its current stock price.

Transcript

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Questions & Answers

Q: Why has Snapchat's stock been on a downward trend since its IPO?

The stock initially surged due to high demand, but it has since dropped to its fair value, as determined by the company and Wall Street.

Q: Are Snapchat's daily active users still growing?

Yes, the company has seen consistent growth in its daily active user base, although it has slowed down in recent periods.

Q: Is Snapchat focusing on expanding into emerging markets?

Snapchat is currently focusing on North America and Europe, where it generates the majority of its revenue. Expanding into emerging markets may not be profitable in the short term.

Q: Is Snapchat expected to become profitable soon?

No, the company is expected to continue reporting losses for the next few years, with potential profitability in 2020.

Summary & Key Takeaways

• Snapchat's stock has reached its lowest point in the last 52 weeks, trading at $17 per share.

• The stock initially saw a surge after its IPO, but has since been on a downward trend.

• The company's daily active user numbers have shown significant growth, particularly in North America.