I can honestly say that snapchat is the one app on my phone that I think about deleting on a regular basis. I never do because I keep thinking, "I must be missing something with this stupid app. It can't be this useless. I will check it out again later." But no matter how many times I go back to it, I still can't find a reason to like it. The fact that this app is the basis for a $23 billion dollar IPO blows my mind, and is the biggest indicator I can see that indicates a market TOP.
It's target demographic is 12 to 30 year olds. You and I are not who they are targeting. But this app only confirms what I already knew, I have no idea what makes millennials tick. Strange folks they are.
Personally: I use the app occasionally with family, and friends. The Business/ IMHO: The content is dynamic, as a video is maxed out at 10-seconds, and self-destructs. Brilliant feature, not a lot of clutter in the clouds or on servers, and keeps the subscriber coming back. Don't get any ideas Baron! Per Wikipedia, there are 156 million subscribers on SNAP, and 20 million photos are shared every day. SNAP has signed a few large advertising deals, including one with NFL. They're core business appears to be social media and advertising, but they operate as a "camera company". Brilliant branding strategy! A lot of eyeballs using SNAP. No Red Cross on their HQ's, the game is monetizing the subscription base for advertising. Print, tv and radio are either dead or dying. Most print, tv and web ads (in my experience) are aimed at the Baby Boomers and Gen-x crowd. Not too many commercials aimed at the millenia crowd. Static website ads are losing steam as well. The future is advertising in spaces like Apps, YouTube, Netflix and Hulu. I can't even play a darn game, watch a silly video or watch The Odd Couple reruns without a darn commercial interrupting me. Millenials may find SNAPs 10-second video, and the "Skip Ad" button attractive, that's where advertising may be headed. Instead of a selling one sixty-second commercial, they can sell four fifteen-second commercials at 75% of price. Pure brilliance. I don't feel a market top in the social media equity space, I do feel a lot of FB (price now too frothy for majority) and TWTR (they've lost their way) money will shift into SNAP. No wealth being taken out, just shifting. Maybe Cramer will use SANG instead of FANG. Trading: I don't trade IPOs until cooling period plus 60 is up. This puppy is going to be hot for a while. I'm not touching SNAP now...don't want to be the one paying that bill when the party is over. I'm going to eat Raisin Bran instead of Rice Krispies in the morning! Thanks for letting me share.
Do not know the nuts and bolts of the social media on internet business. But did read the article about Snap's IPO. Says lack of good revenue streams. Seems like another Twitter model. Wonder why does not Twitter have sponsored ads like Facebook and Youtube. Due to the ads and similar features, FB is now valued at $100B, its chart since IPO is rising at 45 degrees angle like a winner stock. Seems companies like Twitter, Snap and others need to have a well defined revenue streams to offset the free service costs.
I believe FB is in a different ballpark (far ahead, and much more diversified). TWTR is in outer space somewhere. The biggest mistake they made was turn down a buyout. They've yet to figure out how to monetize their business. I think SNAP is on to something, early in the game. I'm chomping at the bit to trade it.
Learn to trade and follow the main macro indexes only -- individual stocks or unique instruments are a pain in the butt, in my simple humble opinion Trade one thing, swim in the biggest pool or ocean...grow from there; instead of waddling in a bunch of smaller pools,
I haven't used it , even once. Stock was so hated by all the know it alls, it just about had to do well , at least early on. Wait till they can suck in some shorts, so far its just buyers .