At the moment of writing Snap is worth 17.85B USD. Snapchat makes money mainly through advertisements, as many large tech companies do. With 350 million estimated Daily Active Users, this should be a straight forward endeavor regarding showing users ads every so often. However, Snapchat takes a unique stance when it comes to showing advertisements. Instead of showing users advertisements through standard usage of the app, Snapchat contains advertisement to the “stories” section of the app and tries to draw in users with BuzzFeed style videos. Not only is this portion of the app rarely accessed by average users of the app, but it is distinctly designed to be as “shocking” as possible in order to draw users in, even photoshopping images to trick users into clicking. Personally, I feel that this model is extremely unsustainable and I am curious why such shit methods of monetization are being pursued by SNAP. With such a large user base, SNAP can easily be driving legitimate traffic and methods of monetization without resorting to clickbait videos. With some discussion with SNAP engineers I’ve found that internally, SNAP has a solid infrastructure for scalable ML that could surely be leveraged for use cases outside of CV… so why is leadership failing on such a massive scale here? If Snapchat was truly worth $17 billion USD then we are all here expecting that on average a user will spend significantly more than $50 USD per user while browsing these videos. Pic related: How Snapchat tries to make money #snap #snapchat #snapchatcompany
Because this was never meant to be a company in first place. Started as a sexting school project. VCs and early investors have already cashed out. Just to justify the utility of the company. Sprinkle it with the pinch of Ads and serve the dogshit to the people. Unfortunately they aren’t even breakeven with the revenue they make and the expenses they have
I have been short as shit since $70 and am still trying to justify their valuation here at $10. Still don’t see it!
To your surprise, their CEO dumped majority of the stock last year at $85 and bought real estate and chilling with bikini model
Should change the company name to SnapTwerk
It would be far more descriptive that way.
I love Snapchat stories
I agree with you and appreciate you writing like a normal person, which seems to be rare on Blind. Snap is clearly not worth what the stock suggests. To me, it seems like a possible scenario is for them to be acquired for their AR, ML, CV, etc. stuff at some point in the future, but that point is likely after the valuation has fallen to an embarrassing level and there is more going on in the XR space again.
Thanks Elon son
Huh?