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It Is Fine to Use Snap Chat, Just Not Invest in It

Discussion in 'BlackHat Lounge' started by BassTrackerBoats, Mar 7, 2017.

  1. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    Snap’s stock price is getting slammed again

    March 7, 2017 | 2:10pm

    The value of Snap Inc.’s stock is disappearing again.

    Shares of Snapchat’s parent company dropped more than 12 percent on Tuesday — matching a 12-percent Monday selloff on Monday — as Wall Street skepticism about the startup’s financial prospects mounts.

    Snap’s shares hit a low of $20.84 in early trading on Tuesday after closing a day earlier at $23.77 — below the $24 opening price Snap shares got in their splashy debut last Thursday on the New York Stock Exchange.

    Snap’s relatively skimpy revenue and an admission by 26-year-old co-founder Evan Spiegel that the company will lose money until at least 2019 is taking its toll, market sources said.

    On Tuesday, Snap’s shares also likely took a hit as investors gained the ability to “short” Snap shares — or bet that they will fall even further, according to one analyst.

    The stock — which reportedly has been popular among first-time millennial investors — changed hands at $21.11, off 11 percent, in early afternoon trades.

    This week’s selloff has wiped out more than $9 billion of the company’s market capitalization from Friday’s high above $34 billion — a valuation above that of Hewlett-Packard and just below eBay’s.

    With Tuesday’s selloff, Snap’s current valuation around $17.5 billion still leaves it well above that of its troubled tech rival, Twitter, currently valued at $10.8 billion.

    Snap shares had surged 44 percent in a hotly anticipated listing on Thursday, but none of the analysts have initiated the stock with a “buy” rating — a fact that is beginning to sink in with investors.

    Of the six analysts, four recommend “selling” the stock, with two having “neutral” ratings, according to Thomson Reuters data.

    Needham analyst Laura Martin on Monday rated Snap “underperform” and compared its stock to buying a lottery ticket.

    Snap has been heavily traded in its first three days, rolling over the number of shares sold in the IPO more than twice.

    Source: http://nypost.com/2017/03/07/snaps-stock-price-is-getting-slammed-again/

     
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  2. Neon

    Neon BANNED BANNED Jr. VIP

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    Who bought Snap stock? Snapchat's young users snap up stock — and want more IPOs.

    What a joke, just read this :D
    http://www.usatoday.com/story/tech/talkingtech/2017/03/06/snapchats-young-users-snap-up-stock-and-want-more-ipos/98710988/
     
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  3. elavmunretea

    elavmunretea Elite Member

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    Pump and dump, it was an obvious ploy by the NYSE having them down on the floor.

    I don't think it'll drop below the initial $17, but I think anyone investing after Thursday will be hard-pushed to get a worthwhile return.
     
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  4. MisterF

    MisterF Jr. VIP Jr. VIP

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    This internet thing is a bubble waiting to burst I tell you all.:confused:
     
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  5. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Its crazy how they have no idea if it could become profitable just maybe starting in 2019 yet they were worth more than a company with much more assets and an actual profit in the billions.

    Snapchat could easily fuck themselves big if they decide to crack down on adult content after the IPO, instead of allowing it more, making it easier to sell access and take a small cut of it.
    https://motherboard.vice.com/en_us/article/sexy-snapchatters-arent-thrilled-with-its-ipo
     
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  6. Sherbert Hoover

    Sherbert Hoover Jr. Executive VIP Jr. VIP

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    I'm good over here with my index funds like the Oracle told us last week.
     
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  7. Holzr

    Holzr Jr. VIP Jr. VIP

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    Snap: hugely over valued, made a $500M loss last year, slowing in growth (hurt by IG live/stories), little intellectual property , little/no barriers to entry for competitors (FB,IG!!!), Valued higher than FB... The list is endless. Going to fall hard like Twitter unless they can make $$$ expand and grow the business.

    Just stick to buffet advice and buy low cost index funds. Get rich slowly ;)
     
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  8. cnick79

    cnick79 Jr. VIP Jr. VIP

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    Longterm (3+ years), I don't see Snap's stock being any better than Twitter. I can see it rising short term (now-2 years) to $60-$80 based on speculation and hope that Snap will be the next FaceBook. I am curious if Snap can make any strides with Augmented Reality. I think AR is going to be bigger than Virtual Reality and it could benefit Snap if they are the ones innovating and coming out with new ideas.

    The number of users is what to keep your eye on with Snap. I think FB had 750m users at the time of IPO and now has over 2b.
     
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  9. Billy_Batts

    Billy_Batts Jr. VIP Jr. VIP

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  10. ConsultJoseph

    ConsultJoseph Jr. VIP Jr. VIP

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    The way I see it, the only value they have is the amount of fear they instill on Facebook (as a real competitor for attention and usage). And you know what?

    This is Facebook's fault.

    Why? For buying Whatsapp for NINETEEN BILLION FREAKING DOLLARS (also keep in mind, they bought IG and gave multiple offers to buy Snapchat, that prodded the value way way up). They are telling the whole market that they do not care about the true valuation or basing on potential, market share, reach and profitability, they just don't want their money train to stop.

    /endrant
     
  11. ConsultJoseph

    ConsultJoseph Jr. VIP Jr. VIP

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    Sorry, what is this? Facebook? You don't tag someone else's name on a post here in BHW, you get the link of the thread and PM/message it to the guy you want to read it.

    I'm bothered with this... or is it just me?
     
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  12. whiteblackseo

    whiteblackseo Jr. VIP Jr. VIP

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  13. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    Part of the benefit of the forum using this platform is that you can mention someone so they can see the thread.
     
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  14. mickyfu

    mickyfu Jr. VIP Jr. VIP

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  15. kontentguy

    kontentguy Regular Member UnGagged Attendee

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    How u gona trash Facebook for buying WhatsApp for 19 billion, but not praise them for buying Instagram for 1 billion.

    The Instagram purchase was probably one of the best in history!!
     
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  16. Holzr

    Holzr Jr. VIP Jr. VIP

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    I agree. They will need to diversify if they want any hope of turning a profit/surviving. AR/VR could be interesting avenue.
     
  17. ConsultJoseph

    ConsultJoseph Jr. VIP Jr. VIP

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    That isn't the point... (although, it can be argued that the YouTube purchase by Google is better)

    The purchase of WhatsApp tells the market that it is very aggressive in its search for being not only the most used social platforms but the ONLY social platform that people should use and use instead of search engines. Thus, the social game drives up the value of social platforms where exponential growth is seen (hence, Snapchat's valuation) because Facebook's fear plays into investors' mindset of people willing to pay absurdly premium rates for shares.

    I do think, however, the benefit is that WA is very strategic in the sense that a huge percentage of users is on Asia and other countries where Facebook does not have market share
     
  18. Billy_Batts

    Billy_Batts Jr. VIP Jr. VIP

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    I tag this person because snapchat is a big thing in his/her project and maybe he/she missed this post.

    Move along.
     
  19. blackbeans

    blackbeans Jr. VIP Jr. VIP

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    Shorts are hammering it hard

    Expect the stock to slide even further as INSIDERS and EMPLOYEES' stocks become UNLOCKED in a few months.

    Many might sell because the stock has slid so hard

    When they do, this will trigger another slide

    Given the fact that the most OPTIMISTIC projections for SNAP see profitability only in 2020, I suspect the BOTTOM for this stock is around $5 to $8

    3 Years is a LOOOOOONG time in stock trading terms
     
  20. blackbeans

    blackbeans Jr. VIP Jr. VIP

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    I agree. The IG purchase was on the same level as the Youtube purchase by Google
     
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