Snap a dying company?
Is Snap a dying company? Is it worth it to join them ?
Maybe no future but they apparently know how to throw one heck of a party.
Dying? I really don't think so. We do need to get costs in line as has been stated publicly, but revenue YoY growth has been happening. The main product has a younger audience but is sticky. Ad dollars will follow as this crowd gets older.
Ads are ads like. Why will ad dollars follow as crowd is older? Why not now? Also you're assuming that as your audience gets older, they will keep using your product. It could be the opposite.. I used to use snapchat during college a lot.. I don't anymore.
I'd worry a lot about Instagram otherwise I love the product.
Yes
Yes
Yes
Probably acquisition target.
Yes
Yup stay away
The product seems to have great stickiness. I'm the wrong target but all six 18-25 year old American born colleagues I know use Snapchat extensively. Small sample set, I know! Maybe answerers should also state their age / more on demographic. If you're talking of stock price, remember that Facebook also traded below listing price for a full year after IPO.
There was no social giant to compete at the time of Facebook IPO though. Facebook is extremely aggressive and has a ton of cash. I also thought the same like you but now I am beginning to wonder if Snap can survive at all.
Snap is a camera company. Namely, the general focus isn't on social here, it's on how can we make content creation easier and more fun which in turn encourages sharing/the social aspect.
Hard to say. Snap has been unable to innovate past their main product which is a pretty good one. They porbably have enough to have another year of runway to show significant growth or ability to deliver another hit without losing too much in value. So, joining then could be high risk high reward right now.
High risk yes, but why high reward?
Actually, I would say it's relatively low risk, high reward. It could halve from here, but it could also quadruple if it shows strong user growth or ability to deliver another sticky product. As such, being public, if the straight value of their offer is higher than other offers, you could roll the dice on a big payday.