Skip to main content

Snap Chat at 25 (update)

Ok

I don't use SnapChat -- to be perfectly honest I don't really know what SnapChat is about considering that the whole thing is that you seem to be able to send inappropriate pictures that will disappear into the ether immediately (really).  Honestly, what's to stop a person who receives a snapchat from taking a picture and then posting it on...

Maybe the new generation has figures out that your Facebook pictures of you snogging some girl could come to haunt you many years later.  A suggestion, if you think the picture is inappropriate maybe it's best not to send it all!

Anyway, this morning SnapChat was launched on the NYSE with a price of about $17 per share, a nice one day boost of 47% to $25.16 this afternoon made everyone that got allocation in the IPO- happy.

Also this morning the market gave a target price of $10...mmmmh.

I've not looked at the annual report but something tells me that with a company that was valued at US$ 29 billion and is now worth US$42 billion is somewhat overpriced.  I am curious as to their revenue model.  I got Google and Facebook wrong, Google's prime money maker Google Adsense didn't exist at the time of the IPO -- so again it was a leap of faith on the part of the investors.

Apparently in 2016 Snapchat made revenues of US$ 400 million -- so a company with revenues of 400 million (and I would guess expenses greater than that-- Turns out that net income was -514 million) has a US$ 42 billion market cap.

I just found out that the company raised US$ 3.4 billion -- on a launch market cap of 29 billion.  I don't know if that includes the greenshoe option -- my guess is that it does since that would explain the nearly 12% of shares issues.

Not that the market gives a damn about my views -- after all even with a 29 billion market cap, and 400 million in revenues -- this is all about the future revenue growth.

No position (or appetite) for Facebook, Google or Snapchat


Comments

Post a Comment

Popular posts from this blog

The end of Tesla?

 it takes a special kind of idiot, to think that he can antagonize his entire customer base, and think that it will not impact his business. When Elon Musk went to work for Donald Trump, and created the doge department, he antagonized every liberal, and these people represent 90% of his client base.That’s not a brilliant move. Now Elon Musk is worth hundreds of billions of dollar, so he shouldn’t care a great deal, however, he needs to care because of several other issues. The cyber truck has been a disaster, most have had to be recalled because of defective glue, it’s not a truck, it’s not a car, it’s noisy, relatively uncomfortable, but great as a development platform. What Tesla has learned in making car manufacturing more seamless is truly amazing. The problem was that Elon Musk was so pissed with the Democrats, and with Joe Biden, in particular because of some slight, which were just plain stupid too. By the way, that he decided to support with hundreds of millions of dollar, ...
Post a Comment
Read more

Donald Trump‘s bad bargain

 The entire of 2023 and 2024 when Donald Trump was running for the White House, his mantra was no war, that the Ukraine conflict would be resolved in a day, and that he would do everything not to involve America and war. How the world has changed! He finds himself facing three conflicts; Ukraine, still going on almost 5 months after he became president. Gaza, an unspeakable crime against humanity, is obviously going to go all the way to its bitter end. And finally, Israel’s attack against Iran. It’s important to note, that Benjamin Netanyahu first indicated at the United nation that the Iranian were 3 to 5 years away from having the nuclear bomb. He made that statement in 1995. Therefore, no one is surprised that he uses the same two lines every so often. It’s entirely possible, that 30 years after he first announced it, that Iran has finally developed the bomb. It’s also remarkable that Iran, local power has been destroyed, from Yemen, to Syria, via Lebanon and Gaza to small exten...
Post a Comment
Read more

TACO again, but worst!

 Donald Trump got the rare earth metals that he had thrown away on April 2, liberation day as he called it. What did the Chinese get in exchange? The whole deal, is on the wrap right now. But let’s be clear. It’s the Chinese that have the upper hand.Some of the materials made by the Chinese, are simply unavailable anywhere else. suspicions are that the Chinese got the high-end chips that they lost under Biden. Tariffs will probably return to the level of April 1, and in the end Donald and his friends got nothing for it. It gets worse, Chinese exports to United States are down 40%. The Chinese have found new markets, I probably never gonna buy American grain again. Once again, Donald Trump proved he’s a great negotiator. He got absolutely nothing for his Showmanship. He told the world, that everyone would come and kiss his ass, instead they’re laughing At him. There’s no joke about Donald Trump, a 25 and inherited a huge fortune and proceeded to make it a small one. Bottom line, the...
Post a Comment
Read more