Snap, company that has SnapChat is expected to go public this week. What is everyone's thoughts and valuation of the company? How will it compare to similar companies such as FB and TWTR.

More like twatter me thinks.

I saw $18 today as opening price

How much do you believe in the story?

SNAP S-1

You can't really look at the current financial statements for anything.Like all tech companies, if they achieve the massive revenue growth investors are hoping for, there is plenty of operating leverage in their business model with minimal capex.

Personally, I don't see it. People rely on facebook and they have a ton of personal information about their users which allows it to leverage this information to advertise to users (among other revenue streams). Twitter is a little more gimmicky, but people rely on it for news and information which should allow it to advertise to users. If facebook and twitter disappeared from the market, lots of people would miss the product. I don't think snap is in the same league. I think user growth will start to level off as I don't think plays as well outside of the millennial and younger market. My guess is it will be worse than twitter (so that likely means everyone should back up the truck on it).

Reasons I could be wrong:

• As I mentioned, plenty of operating leverage in the business.
• They have are still experiencing massive growth in daily active users. They need to continue to grow this at a huge rate to be successful.
• Their ability to monetize their platform is in it's infancy and they have seen huge quarterly growth in revenue per daily active. How high can this go before leveling off?
• They generate $2.15 per user in North America versus $0.28 in Europe and $0.15 in the rest of the world. If they can better monetize their international users, that would be a huge pick-up. They won't get to the same amount, but they can close the gap.

Bill Simmons podcast had an interesting tech business discussion last week that included Snapchat. Of course, his podcasts clock in over an hour. Summary for those with things to do, Snapchat is better than the joke that is Twitter, but is no Facebook.

How are they going to be able to monetize what Twitter hasn't been able to.

I would short after the initial IPO surge.

That is becoming a common trend.

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if they achieve the massive revenue growth investors are hoping for, there is plenty of operating leverage in their business model with minimal capex.

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Their platform runs on Google Cloud, which is both good and bad. It minimizes the need for large infrastructure investments, but there is a marginal cost per user. It looks like they got less efficient yoy from 2015 to 2016. In 2015 they averaged around 100MM DAU at $1.82 per DAU in COGS. 2016 was 150MM DAU at close to $3 per DAU. They've also ramped their S&M spend, and the cost to acquire a DAU went from ~$1 in 2015 to >$2 in 2016. They aren't exhibiting any sort of scale at the moment, and I'm not convinced they'll ever monetize the users. There is so much execution risk here at 20x forward revenue, there's no way I'd touch this thing.

as a millennial who trades and uses snapchat daily,

I am looking at doing the same.

sooo... is it open yet?

OnlyForNow said:

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sooo... is it open yet?

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No. Currently indicating a 23.50-24.50 opening price.

Crazy, that puts their market cap around $33B... about the same as Target.

26 year old CEO with a supermodel fiancee and a big valuation. Not a bad gig.

jpc08 said:

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Crazy, that puts their market cap around $33B... about the same as Target.

26 year old CEO with a supermodel fiancee and a big valuation. Not a bad gig.

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Hope he got a prenup.

http://www.cnbc.com/2017/03/02/snap-gets-its-first-wall-street-rating-and-its-a-sell.html

Was interested in it under 20 so I could sell on the pop, but will not touch it this high. Not a fan of the product.

How is buying non voting shares different than playing blackjack?

amercer said:

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How is buying non voting shares different than playing blackjack?

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What? That makes zero sense.

FarmerJohn said:

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Bill Simmons podcast had an interesting tech business discussion last week that included Snapchat. Of course, his podcasts clock in over an hour. Summary for those with things to do, Snapchat is better than the joke that is Twitter, but is no Facebook.

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For me, the gist of it was "they're like twitter in that they don't really have a business model capable of making a lot of money right now, but their CEO is an inspirational genius, so you're really betting on him rather than their current product."

If there are is anything I learned from Silicon Valley it is the following:
A) take less funding with reasonable revenue targets
B) Peter Gregory is dead

Seven Costanza said:

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FarmerJohn said:

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Bill Simmons podcast had an interesting tech business discussion last week that included Snapchat. Of course, his podcasts clock in over an hour. Summary for those with things to do, Snapchat is better than the joke that is Twitter, but is no Facebook.

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For me, the gist of it was "they're like twitter in that they don't really have a business model capable of making a lot of money right now, but their CEO is an inspirational genius, so you're really betting on him rather than their current product."

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The guy talked abt it like Twitter and I don't think it was so much that the CEO is a genius as it was 'yeah It's like Twitter but Twitter fumbled the football horribly.' I think the point he was making was that Snapchat will be just fine so long as they don't screw the pooch like Twitter.

ATM9000 said:

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Seven Costanza said:

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FarmerJohn said:

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Bill Simmons podcast had an interesting tech business discussion last week that included Snapchat. Of course, his podcasts clock in over an hour. Summary for those with things to do, Snapchat is better than the joke that is Twitter, but is no Facebook.

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For me, the gist of it was "they're like twitter in that they don't really have a business model capable of making a lot of money right now, but their CEO is an inspirational genius, so you're really betting on him rather than their current product."

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The guy talked abt it like Twitter and I don't think it was so much that the CEO is a genius as it was 'yeah It's like Twitter but Twitter fumbled the football horribly.' I think the point he was making was that Snapchat will be just fine so long as they don't screw the pooch like Twitter.

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I disagree. The tech guy said "I haven't seen a product visionary like this since Steve Jobs. I think he's that great. The problem is they don't really have a business yet. If you're betting on Snapchat, it's really a bet on Evan Spiegel."

DRE06 said:

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amercer said:

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How is buying non voting shares different than playing blackjack?

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What? That makes zero sense.

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I understand the purpose of stocks in a classical economic sense. I don't understand, fundamentally, the purpose of stocks in companies that don't pay dividends and don't let you vote. The only reason to buy that stock is the hope that someone else will pay you for it later. It's completely removed from the actual ability of the company to make money selling a product or service.

When do options start trading?

What proprietary technology does Snap own for their moat?

wessimo said:

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When do options start trading?

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Should be 5 trading days after IPO. I was researching yesterday.

I jumped in this morning and sitting up 3.25% right now. I realize I have to sell to actual realize profit, but wanted to thank y'all for the heads uo

I was in and out yesterday and broke even... if I had held on today I woulda been up 5 dollars a share.

I dont use snap so I have an honest question....
What is it ( all I know is that it is some kinda picture sharing app) and how does it make money ? I understand how FB with their ads popping up all over the damn place sells space but how does some picture app make money ?

The Original AG 76 said:

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I dont use snap so I have an honest question....
What is it ( all I know is that it is some kinda picture sharing app) and how does it make money ? I understand how FB with their ads popping up all over the damn place sells space but how does some picture app make money ?

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Just going to take a wild stab here, but probably by ads popping up all over the damn place