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05-21

Short! 😜

Snap: Recovering From A Temporary Setback, But Worth The Wait

04-26

Don't believe them! Short! 🤪

Hot Chinese ADRs Jump As Investors Have Been Piling Into

03-06

$Novavax(NVAX)$ Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.

01-06

I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!

2023-07-31

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😜","listText":"Short! 😜","text":"Short! 😜","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/308183796183080","repostId":"2437459219","repostType":2,"repost":{"id":"2437459219","pubTimestamp":1716260655,"share":"https://www.laohu8.com/m/news/2437459219?lang=&edition=full","pubTime":"2024-05-21 11:04","market":"nz","language":"en","title":"Snap: Recovering From A Temporary Setback, But Worth The Wait","url":"https://stock-news.laohu8.com/highlight/detail?id=2437459219","media":"seekingalpha","summary":"Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.Snap's growth is now rebounding,","content":"<ul style=\"\"><li><p>Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.</p></li><li><p>Snap's growth is now rebounding, though, which the company has attributed to a stronger demand environment and improving ad performance.</p></li><li><p>Despite this, Snap has genuine issues which are yet to be resolved. Of particular concern are rising infrastructure costs and enormous R&amp;D investments with unclear payoffs.</p></li><li><p>The stock could move higher if the company's fundamentals improve, but it is difficult to get excited about Snap's long-term prospects unless its efficiency improves.</p></li></ul><p>Snap's financial performance continues to rebound after a difficult 2-year period which has been driven by a combination of macro headwinds and privacy initiatives impacting digital advertising. While Snap's near-term future is highly dependent on macro conditions remaining stable, the company should continue to generate solid growth with improving margins over a longer time frame.</p><p>The last time I wrote about Snap in December, I suggested that while its fundamentals were improving, the company's valuation would probably limit near-term upside. Despite the recent jump, Snap's share price is still down since then. While I feel that the company has been unfairly maligned, Snap also has genuine issues, and as a result, I find it difficult to get excited about the stock outside periods of excessive investor pessimism.</p><h2 id=\"id_1052204787\">Market Conditions</h2><p>A post-pandemic hangover, tighter financial conditions and difficulties wrought by privacy initiatives have caused significant difficulties for many digital advertising companies in recent years. There has a broad-based reacceleration in recent quarters, though, which is somewhat surprising given that macro uncertainty remains elevated and retail sales are weak. Much of this is likely to be a result of the ecosystem adjusting to privacy changes. Some companies have recovered targeting and attribution faster than others, though, and Snap has been a laggard in this regard. As a result, it could continue to see relatively strong performance in coming quarters.</p><p>Snap has stated that the improvement in market conditions in Q1 was broad-based, with verticals like CPG, ecommerce, restaurants, and travel performing particularly well. Demand for brand advertising picked up, and Snap's direct response business accelerated on the back of improved ad performance. The direct response business is expected to continue improving in Q2, but there will be some seasonality headwinds.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3b332628fd86e276dfc91f2af2fab8da\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 1: Social Media Company Revenue (source: Created by author using data from company reports)</p><p>It is worth noting that social media could continue to face headwinds in coming years as its impact on society becomes more widely recognized. For example, a UK regulator has proposed social media rules which aim to protect children from harmful content, which appears to be targeted at recommendation algorithms. The Australian Prime Minister has called for a social media age limit to protect the mental health of children, with Labor pledging 6.5 million AUD towards an age verification trial and also launching an inquiry into social media platforms. The South Australian government is also pushing for an outright ban on social media for children, although it is not clear yet whether this is even feasible. Under the proposal, children aged 14 and 15 would require parental consent to access a social media account. This could be particularly harmful for Snap, as its user base skews towards younger people.</p><h2 id=\"id_2974577933\">Snap Business Updates</h2><p>Snap currently has 3 strategic priorities:</p><ul style=\"\"><li><p>Diversifying revenue and accelerating growth</p></li><li><p>User growth and engagement</p></li><li><p>Augmented reality</p></li></ul><p>Stronger revenue growth in the first quarter was attributed to improvements to the advertising platform and increased demand. Snap has been trying to increase ROAS on its platform through product innovation. This is largely based around introducing privacy safe signals and investing in larger models. For example, Snap is now investing around 100 million USD per quarter in machine learning.</p><p>There are aspects of Snap’s platform that are likely to be appealing to advertisers (user demographics, differentiated products) but the company still needs to further improve ad performance. It is questionable whether Snap has access to the first-party data necessary to replicate the success of Meta, though.</p><p>Snap also continues to attract demand to its platform. The company's self-serve SMB product contributed to an 85% YoY increase in the number of SMB advertisers on the platform. Snap is also benefitting from the introduction of third-party demand. Snap has an ad partnership with Amazon, which aims to bring relevant products to Amazon shoppers inside the Snapchat experience.</p><p>Snapchat+ now has approximately 9 million subscribers and continues to provide an incremental source of high margin revenue. Snapchat+ provides subscribers access to exclusive, experimental, and pre-release features, with generative AI potentially increasing its appeal.</p><h2 id=\"id_517496098\">Financial Analysis</h2><p>Snap’s revenue increased 21% YoY in the first quarter to 1.195 billion USD. Direct response advertising revenue increased 17% YoY, driven by improving ROAS for advertising partners. Brand advertising revenue grew 12% YoY on the back of a stronger demand environment. Other revenue increased 194% YoY to 87 million USD, primarily due to Snapchat+ subscription revenue.</p><p>Snap expects 431 million DAUs and 1.225-1.255 billion USD revenue in the second quarter, implying 15-18% YoY revenue growth.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/338271c367888b5f88532a90292775ab\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 2: Snap Revenue Growth (source: Created by author using data from Snap)</p><p>Snap’s DAUs increased 10% YoY to 422 million in the first quarter. This growth is mainly coming from outside of North America and Europe, meaning its impact on revenue growth is currently muted. Snap also continues to drive increased engagement, with the number of viewers and total content consumption time increasing versus the prior year period. The company is particularly focused on engagement in North America and Europe. I have previously suggested that Snap could be approaching saturation in its more mature markets, but that engagement still provides a large opportunity, as the platform has over 750 million monthly active users.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/1004c2bd1998bdc476a93d8e1364e1c3\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 3: Snap DAUs (source: Created by author using data from Snap)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aa2fa84158489ab7826331a7c6bde39f\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 4: Snap ARPU (source: Created by author using data from Snap)</p><p>Snap’s gross profit margin continued its recent slide in the first quarter, which was largely due to rising infrastructure costs. Snap has suggested that this is due to investments in machine learning to support its direct response ad business. Snap is also facing margin headwinds from the growth of users in lower ARPU regions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/75c731cd1bc6292fd7b3911a2f9a1e75\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 5: Snap Gross Profit Margin (source: Created by author using data from Snap)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6e9b20b63057ec41a150d5145e2d1156\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 6: Snap Infrastructure Cost per User (source: Created by author using data from Snap)</p><p>Adjusted operating expenses increased 5% YoY to 579 million USD, supported by cost-cutting initiatives. Headcount was down 7% YoY at the end of the first quarter, although this was offset by 70 million USD of costs related to restructuring initiatives. Operating expenses continue to be driven by R&amp;D.</p><p>Snap continues to generate modest free cash flow, but this is somewhat meaningless given the amount of stock-based compensation. SBC was down 60 million USD YoY in the first quarter, but the company's share count increased 3.8% YoY. Snap is anticipating 1.13-.12 billion USD stock-based compensation in 2024, putting SBC per employee at around 240,000 USD. The distribution of SBC is likely to be highly skewed, but Snap's costs still appear to be excessive.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8e51db46d8fdc49b7e99037c58616916\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 7: Snap Operating Profit Margin (source: Created by author using data from Snap)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f898f3643365db6de25c49f39fd748a8\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 8: Snap Operating Expenses (source: Created by author using data from Snap)</p><p>Snap repurchased 100 million USD of its 2025 convertible notes and 351 million USD of its 2026 convertible notes in the first quarter. This was done at prices below par value.</p><p>Snap recently announced a planned issuance of 650 million USD of convertible senior notes due 2030. The initial purchasers will also have an option to buy up to an additional 100 million USD notes. The notes will accrue 0.5% interest payable semi-annually in arrears. Proceeds will be directed towards general corporate purposes and repurchasing previously issued convertible notes.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d5e91788d1c188da46a5f4baa600324e\" tg-width=\"590\" tg-height=\"438\"></p><p>Figure 9: Snap Outstanding Convertible Notes (source: Snap)</p><h2 id=\"id_2676019807\">Conclusion</h2><p>While Snap has large losses and continues to dilute existing shareholders through SBC, the company has a large cash balance which it has been using to repurchase shares. Since Q3 2022, Snap has repurchased 145 million shares at an average price of 9.86 USD per share (total cost of approximately 1.4 billion USD). While this is largely just an attempt to neutralize the impact of SBC, these repurchases should end up working out fairly well.</p><p>Snap also still has approximately 2.9 billion USD in cash and marketable securities, providing the company with flexibility going forward. This cash balance is likely to be viewed more favorably given that Snap is now cash flow positive.</p><p>After the recent increase in share price, Snap's valuation is now less forgiving. Despite this, the stock can move higher provided that the company's fundamentals continue to improve. Increasing ad ROAS and a more stable demand environment should be supportive of growth going forward. Snap's losses remain large, though, and there is little evidence that the company is becoming more disciplined.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/deba74513e74d0a9d8211be68a4105d4\" tg-width=\"640\" tg-height=\"195\"></p><p>Figure 10: Snap EV/S Ratio (source: Seeking Alpha)</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Snap: Recovering From A Temporary Setback, But Worth The Wait</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSnap: Recovering From A Temporary Setback, But Worth The Wait\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-21 11:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4694669-snap-stock-recovering-from-temporary-setback-but-worth-wait-hold><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.Snap's growth is now rebounding,...</p>\n\n<a href=\"https://seekingalpha.com/article/4694669-snap-stock-recovering-from-temporary-setback-but-worth-wait-hold\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SNAP":"Snap Inc","BK4554":"元宇宙及AR概念","BK4077":"互动媒体与服务","BK4551":"寇图资本持仓","BK4508":"社交媒体","BK4576":"AR"},"source_url":"https://seekingalpha.com/article/4694669-snap-stock-recovering-from-temporary-setback-but-worth-wait-hold","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2437459219","content_text":"Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.Snap's growth is now rebounding, though, which the company has attributed to a stronger demand environment and improving ad performance.Despite this, Snap has genuine issues which are yet to be resolved. Of particular concern are rising infrastructure costs and enormous R&D investments with unclear payoffs.The stock could move higher if the company's fundamentals improve, but it is difficult to get excited about Snap's long-term prospects unless its efficiency improves.Snap's financial performance continues to rebound after a difficult 2-year period which has been driven by a combination of macro headwinds and privacy initiatives impacting digital advertising. While Snap's near-term future is highly dependent on macro conditions remaining stable, the company should continue to generate solid growth with improving margins over a longer time frame.The last time I wrote about Snap in December, I suggested that while its fundamentals were improving, the company's valuation would probably limit near-term upside. Despite the recent jump, Snap's share price is still down since then. While I feel that the company has been unfairly maligned, Snap also has genuine issues, and as a result, I find it difficult to get excited about the stock outside periods of excessive investor pessimism.Market ConditionsA post-pandemic hangover, tighter financial conditions and difficulties wrought by privacy initiatives have caused significant difficulties for many digital advertising companies in recent years. There has a broad-based reacceleration in recent quarters, though, which is somewhat surprising given that macro uncertainty remains elevated and retail sales are weak. Much of this is likely to be a result of the ecosystem adjusting to privacy changes. Some companies have recovered targeting and attribution faster than others, though, and Snap has been a laggard in this regard. As a result, it could continue to see relatively strong performance in coming quarters.Snap has stated that the improvement in market conditions in Q1 was broad-based, with verticals like CPG, ecommerce, restaurants, and travel performing particularly well. Demand for brand advertising picked up, and Snap's direct response business accelerated on the back of improved ad performance. The direct response business is expected to continue improving in Q2, but there will be some seasonality headwinds.Figure 1: Social Media Company Revenue (source: Created by author using data from company reports)It is worth noting that social media could continue to face headwinds in coming years as its impact on society becomes more widely recognized. For example, a UK regulator has proposed social media rules which aim to protect children from harmful content, which appears to be targeted at recommendation algorithms. The Australian Prime Minister has called for a social media age limit to protect the mental health of children, with Labor pledging 6.5 million AUD towards an age verification trial and also launching an inquiry into social media platforms. The South Australian government is also pushing for an outright ban on social media for children, although it is not clear yet whether this is even feasible. Under the proposal, children aged 14 and 15 would require parental consent to access a social media account. This could be particularly harmful for Snap, as its user base skews towards younger people.Snap Business UpdatesSnap currently has 3 strategic priorities:Diversifying revenue and accelerating growthUser growth and engagementAugmented realityStronger revenue growth in the first quarter was attributed to improvements to the advertising platform and increased demand. Snap has been trying to increase ROAS on its platform through product innovation. This is largely based around introducing privacy safe signals and investing in larger models. For example, Snap is now investing around 100 million USD per quarter in machine learning.There are aspects of Snap’s platform that are likely to be appealing to advertisers (user demographics, differentiated products) but the company still needs to further improve ad performance. It is questionable whether Snap has access to the first-party data necessary to replicate the success of Meta, though.Snap also continues to attract demand to its platform. The company's self-serve SMB product contributed to an 85% YoY increase in the number of SMB advertisers on the platform. Snap is also benefitting from the introduction of third-party demand. Snap has an ad partnership with Amazon, which aims to bring relevant products to Amazon shoppers inside the Snapchat experience.Snapchat+ now has approximately 9 million subscribers and continues to provide an incremental source of high margin revenue. Snapchat+ provides subscribers access to exclusive, experimental, and pre-release features, with generative AI potentially increasing its appeal.Financial AnalysisSnap’s revenue increased 21% YoY in the first quarter to 1.195 billion USD. Direct response advertising revenue increased 17% YoY, driven by improving ROAS for advertising partners. Brand advertising revenue grew 12% YoY on the back of a stronger demand environment. Other revenue increased 194% YoY to 87 million USD, primarily due to Snapchat+ subscription revenue.Snap expects 431 million DAUs and 1.225-1.255 billion USD revenue in the second quarter, implying 15-18% YoY revenue growth.Figure 2: Snap Revenue Growth (source: Created by author using data from Snap)Snap’s DAUs increased 10% YoY to 422 million in the first quarter. This growth is mainly coming from outside of North America and Europe, meaning its impact on revenue growth is currently muted. Snap also continues to drive increased engagement, with the number of viewers and total content consumption time increasing versus the prior year period. The company is particularly focused on engagement in North America and Europe. I have previously suggested that Snap could be approaching saturation in its more mature markets, but that engagement still provides a large opportunity, as the platform has over 750 million monthly active users.Figure 3: Snap DAUs (source: Created by author using data from Snap)Figure 4: Snap ARPU (source: Created by author using data from Snap)Snap’s gross profit margin continued its recent slide in the first quarter, which was largely due to rising infrastructure costs. Snap has suggested that this is due to investments in machine learning to support its direct response ad business. Snap is also facing margin headwinds from the growth of users in lower ARPU regions.Figure 5: Snap Gross Profit Margin (source: Created by author using data from Snap)Figure 6: Snap Infrastructure Cost per User (source: Created by author using data from Snap)Adjusted operating expenses increased 5% YoY to 579 million USD, supported by cost-cutting initiatives. Headcount was down 7% YoY at the end of the first quarter, although this was offset by 70 million USD of costs related to restructuring initiatives. Operating expenses continue to be driven by R&D.Snap continues to generate modest free cash flow, but this is somewhat meaningless given the amount of stock-based compensation. SBC was down 60 million USD YoY in the first quarter, but the company's share count increased 3.8% YoY. Snap is anticipating 1.13-.12 billion USD stock-based compensation in 2024, putting SBC per employee at around 240,000 USD. The distribution of SBC is likely to be highly skewed, but Snap's costs still appear to be excessive.Figure 7: Snap Operating Profit Margin (source: Created by author using data from Snap)Figure 8: Snap Operating Expenses (source: Created by author using data from Snap)Snap repurchased 100 million USD of its 2025 convertible notes and 351 million USD of its 2026 convertible notes in the first quarter. This was done at prices below par value.Snap recently announced a planned issuance of 650 million USD of convertible senior notes due 2030. The initial purchasers will also have an option to buy up to an additional 100 million USD notes. The notes will accrue 0.5% interest payable semi-annually in arrears. Proceeds will be directed towards general corporate purposes and repurchasing previously issued convertible notes.Figure 9: Snap Outstanding Convertible Notes (source: Snap)ConclusionWhile Snap has large losses and continues to dilute existing shareholders through SBC, the company has a large cash balance which it has been using to repurchase shares. Since Q3 2022, Snap has repurchased 145 million shares at an average price of 9.86 USD per share (total cost of approximately 1.4 billion USD). While this is largely just an attempt to neutralize the impact of SBC, these repurchases should end up working out fairly well.Snap also still has approximately 2.9 billion USD in cash and marketable securities, providing the company with flexibility going forward. This cash balance is likely to be viewed more favorably given that Snap is now cash flow positive.After the recent increase in share price, Snap's valuation is now less forgiving. Despite this, the stock can move higher provided that the company's fundamentals continue to improve. Increasing ad ROAS and a more stable demand environment should be supportive of growth going forward. Snap's losses remain large, though, and there is little evidence that the company is becoming more disciplined.Figure 10: Snap EV/S Ratio (source: Seeking Alpha)","news_type":1},"isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":299417940701320,"gmtCreate":1714119505761,"gmtModify":1714123086111,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"Don't believe them! Short! 🤪","listText":"Don't believe them! Short! 🤪","text":"Don't believe them! Short! 🤪","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/299417940701320","repostId":"1129531306","repostType":2,"repost":{"id":"1129531306","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1714139085,"share":"https://www.laohu8.com/m/news/1129531306?lang=&edition=full","pubTime":"2024-04-26 21:44","market":"us","language":"en","title":"Hot Chinese ADRs Jump As Investors Have Been Piling Into","url":"https://stock-news.laohu8.com/highlight/detail?id=1129531306","media":"Tiger Newspress","summary":"Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.Investor confidence improved as experts from international inves","content":"<html><head></head><body><p>Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.</p><p style=\"text-align: justify;\">Investor confidence improved as experts from international investment firms revised their outlook on Chinese stocks.</p><p style=\"text-align: justify;\">&#34;A lot of investors do see some technical opportunities in China,&#34; said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.</p><p>Equities in Hong Kong have surged this month on the back of strong inflows from mainland Chinese investors, who according to some strategists are investing in the asset class to diversify their currency exposure amid continued depreciation pressure on the yuan. At the same time, foreign funds seem to be rotating money away from expensive global technology stocks to snap up Chinese internet names, which command a higher weighting in Hong Kong gauges.</p><p>Hot Chinese ADRs jumped in morning trading Friday. Alibaba rose 2%; PDD Holdings, Baidu and Netease rose 3%; JD.com rose 5%; Bilibili and Li Auto rose 6%; NIO rose 8%; XPeng rose 10%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9c5aea0e95d0c206dd4a1441d307c1f3\" tg-width=\"388\" tg-height=\"1152\"/></p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hot Chinese ADRs Jump As Investors Have Been Piling Into</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHot Chinese ADRs Jump As Investors Have Been Piling Into\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-04-26 21:44</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.</p><p style=\"text-align: justify;\">Investor confidence improved as experts from international investment firms revised their outlook on Chinese stocks.</p><p style=\"text-align: justify;\">&#34;A lot of investors do see some technical opportunities in China,&#34; said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.</p><p>Equities in Hong Kong have surged this month on the back of strong inflows from mainland Chinese investors, who according to some strategists are investing in the asset class to diversify their currency exposure amid continued depreciation pressure on the yuan. At the same time, foreign funds seem to be rotating money away from expensive global technology stocks to snap up Chinese internet names, which command a higher weighting in Hong Kong gauges.</p><p>Hot Chinese ADRs jumped in morning trading Friday. Alibaba rose 2%; PDD Holdings, Baidu and Netease rose 3%; JD.com rose 5%; Bilibili and Li Auto rose 6%; NIO rose 8%; XPeng rose 10%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9c5aea0e95d0c206dd4a1441d307c1f3\" tg-width=\"388\" tg-height=\"1152\"/></p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JD":"京东","MNSO":"名创优品","YINN":"三倍做多富时中国ETF-Direxion","BEKE":"贝壳","BILI":"哔哩哔哩","XPEV":"小鹏汽车","IQ":"爱奇艺","NIO":"蔚来","TCOM":"携程网","WB":"微博","LI":"理想汽车","NTES":"网易","BIDU":"百度","PDD":"拼多多","BABA":"阿里巴巴"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129531306","content_text":"Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.Investor confidence improved as experts from international investment firms revised their outlook on Chinese stocks.\"A lot of investors do see some technical opportunities in China,\" said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.Equities in Hong Kong have surged this month on the back of strong inflows from mainland Chinese investors, who according to some strategists are investing in the asset class to diversify their currency exposure amid continued depreciation pressure on the yuan. At the same time, foreign funds seem to be rotating money away from expensive global technology stocks to snap up Chinese internet names, which command a higher weighting in Hong Kong gauges.Hot Chinese ADRs jumped in morning trading Friday. Alibaba rose 2%; PDD Holdings, Baidu and Netease rose 3%; JD.com rose 5%; Bilibili and Li Auto rose 6%; NIO rose 8%; XPeng rose 10%.","news_type":1},"isVote":1,"tweetType":1,"viewCount":22,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":281133405184032,"gmtCreate":1709660742905,"gmtModify":1709677259293,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVAX\">$Novavax(NVAX)$</a> Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.","listText":"<a href=\"https://ttm.financial/S/NVAX\">$Novavax(NVAX)$</a> Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.","text":"$Novavax(NVAX)$ Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/281133405184032","isVote":1,"tweetType":1,"viewCount":533,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"3572579289083558","authorId":"3572579289083558","name":"HaizCashAcc","avatar":"https://static.tigerbbs.com/126d9535883d74ae2c58165fa92b15a7","crmLevel":6,"crmLevelSwitch":0},"content":"Same can be said about GME and AMC? Market is like god. They work in mysterious ways.","text":"Same can be said about GME and AMC? Market is like god. They work in mysterious ways.","html":"Same can be said about GME and AMC? Market is like god. They work in mysterious ways."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":260056777781416,"gmtCreate":1704500963329,"gmtModify":1704506511885,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!","listText":"I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!","text":"I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/260056777781416","isVote":1,"tweetType":1,"viewCount":52,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":203727327523032,"gmtCreate":1690767395615,"gmtModify":1690768193331,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"Did Snap pay for this article?","listText":"Did Snap pay for this article?","text":"Did Snap pay for this article?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/203727327523032","repostId":"2355442426","repostType":2,"isVote":1,"tweetType":1,"viewCount":32,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":281133405184032,"gmtCreate":1709660742905,"gmtModify":1709677259293,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVAX\">$Novavax(NVAX)$</a> Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.","listText":"<a href=\"https://ttm.financial/S/NVAX\">$Novavax(NVAX)$</a> Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.","text":"$Novavax(NVAX)$ Why is NVAX still going up when the earnings sucked and they have nothing going for them? It's close to being bankrupt even, as suggested by some analysts.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/281133405184032","isVote":1,"tweetType":1,"viewCount":533,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"3572579289083558","authorId":"3572579289083558","name":"HaizCashAcc","avatar":"https://static.tigerbbs.com/126d9535883d74ae2c58165fa92b15a7","crmLevel":6,"crmLevelSwitch":0},"content":"Same can be said about GME and AMC? Market is like god. They work in mysterious ways.","text":"Same can be said about GME and AMC? Market is like god. They work in mysterious ways.","html":"Same can be said about GME and AMC? Market is like god. They work in mysterious ways."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":299417940701320,"gmtCreate":1714119505761,"gmtModify":1714123086111,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"Don't believe them! Short! 🤪","listText":"Don't believe them! Short! 🤪","text":"Don't believe them! Short! 🤪","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/299417940701320","repostId":"1129531306","repostType":2,"repost":{"id":"1129531306","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1714139085,"share":"https://www.laohu8.com/m/news/1129531306?lang=&edition=full","pubTime":"2024-04-26 21:44","market":"us","language":"en","title":"Hot Chinese ADRs Jump As Investors Have Been Piling Into","url":"https://stock-news.laohu8.com/highlight/detail?id=1129531306","media":"Tiger Newspress","summary":"Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.Investor confidence improved as experts from international inves","content":"<html><head></head><body><p>Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.</p><p style=\"text-align: justify;\">Investor confidence improved as experts from international investment firms revised their outlook on Chinese stocks.</p><p style=\"text-align: justify;\">&#34;A lot of investors do see some technical opportunities in China,&#34; said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.</p><p>Equities in Hong Kong have surged this month on the back of strong inflows from mainland Chinese investors, who according to some strategists are investing in the asset class to diversify their currency exposure amid continued depreciation pressure on the yuan. At the same time, foreign funds seem to be rotating money away from expensive global technology stocks to snap up Chinese internet names, which command a higher weighting in Hong Kong gauges.</p><p>Hot Chinese ADRs jumped in morning trading Friday. Alibaba rose 2%; PDD Holdings, Baidu and Netease rose 3%; JD.com rose 5%; Bilibili and Li Auto rose 6%; NIO rose 8%; XPeng rose 10%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9c5aea0e95d0c206dd4a1441d307c1f3\" tg-width=\"388\" tg-height=\"1152\"/></p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hot Chinese ADRs Jump As Investors Have Been Piling Into</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHot Chinese ADRs Jump As Investors Have Been Piling Into\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-04-26 21:44</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.</p><p style=\"text-align: justify;\">Investor confidence improved as experts from international investment firms revised their outlook on Chinese stocks.</p><p style=\"text-align: justify;\">&#34;A lot of investors do see some technical opportunities in China,&#34; said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.</p><p>Equities in Hong Kong have surged this month on the back of strong inflows from mainland Chinese investors, who according to some strategists are investing in the asset class to diversify their currency exposure amid continued depreciation pressure on the yuan. At the same time, foreign funds seem to be rotating money away from expensive global technology stocks to snap up Chinese internet names, which command a higher weighting in Hong Kong gauges.</p><p>Hot Chinese ADRs jumped in morning trading Friday. Alibaba rose 2%; PDD Holdings, Baidu and Netease rose 3%; JD.com rose 5%; Bilibili and Li Auto rose 6%; NIO rose 8%; XPeng rose 10%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9c5aea0e95d0c206dd4a1441d307c1f3\" tg-width=\"388\" tg-height=\"1152\"/></p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JD":"京东","MNSO":"名创优品","YINN":"三倍做多富时中国ETF-Direxion","BEKE":"贝壳","BILI":"哔哩哔哩","XPEV":"小鹏汽车","IQ":"爱奇艺","NIO":"蔚来","TCOM":"携程网","WB":"微博","LI":"理想汽车","NTES":"网易","BIDU":"百度","PDD":"拼多多","BABA":"阿里巴巴"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129531306","content_text":"Hong Kong and Chinese stocks continued to rise on Friday, with the Hang Seng Index on track for its strongest week in a year and a half.Investor confidence improved as experts from international investment firms revised their outlook on Chinese stocks.\"A lot of investors do see some technical opportunities in China,\" said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.Equities in Hong Kong have surged this month on the back of strong inflows from mainland Chinese investors, who according to some strategists are investing in the asset class to diversify their currency exposure amid continued depreciation pressure on the yuan. At the same time, foreign funds seem to be rotating money away from expensive global technology stocks to snap up Chinese internet names, which command a higher weighting in Hong Kong gauges.Hot Chinese ADRs jumped in morning trading Friday. Alibaba rose 2%; PDD Holdings, Baidu and Netease rose 3%; JD.com rose 5%; Bilibili and Li Auto rose 6%; NIO rose 8%; XPeng rose 10%.","news_type":1},"isVote":1,"tweetType":1,"viewCount":22,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":203727327523032,"gmtCreate":1690767395615,"gmtModify":1690768193331,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"Did Snap pay for this article?","listText":"Did Snap pay for this article?","text":"Did Snap pay for this article?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/203727327523032","repostId":"2355442426","repostType":2,"repost":{"id":"2355442426","pubTimestamp":1690766328,"share":"https://www.laohu8.com/m/news/2355442426?lang=&edition=full","pubTime":"2023-07-31 09:18","market":"us","language":"en","title":"Snap Stock Sinks: Here's Why That's a Buying Opportunity","url":"https://stock-news.laohu8.com/highlight/detail?id=2355442426","media":"Motley Fool","summary":"Investors rushed for the exits following Snap's latest quarterly financial results.","content":"<html><head></head><body><h2 id=\"id_3285679555\" style=\"text-align: start;\">KEY POINTS</h2><ul><li><p>Snap is the parent company of popular social media platform Snapchat.</p></li><li><p>It has struggled to generate growth this year as businesses trim their marketing budgets given the tough economic climate.</p></li><li><p>Snap saw its revenue decline in Q2, and its Q3 forecast wasn&#39;t any better, but there were some bright spots for the company.</p></li></ul><p>It&#39;s no secret the global economy is in rough shape right now. Inflation remains elevated and interest rates continue to rise, which has pressured consumers&#39; spending power. As a result, businesses have slashed their marketing budgets for fear of a lesser return on their investment.</p><p>Companies in digital industries like social media rely on advertising to generate revenue, so the last 12 months haven&#39;t been easy for them. <strong>Snap</strong>, which is the parent company of Snapchat, has struggled more than most. Investors sent its stock price plunging almost 20% the day after it released its financial results for the second quarter of 2023 (ended June 30), and it&#39;s now down 87% from its all-time high.</p><p>Snap&#39;s advertising revenue sank once again, and it issued a weak forecast for the coming third quarter. But there were bright spots, so here&#39;s why the steep decline in Snap stock might be a great buying opportunity for the long term. </p><h2 id=\"id_3916863199\">Snap is reimagining the advertising experience</h2><p>Snap is still working on building its advertising technology back up after <strong>Apple </strong>made changes to its privacy rules in 2021, which made it significantly harder for social media companies to track their users&#39; activity across the internet. As a result, Snap&#39;s ad inventory hasn&#39;t been as attractive to businesses, which has exacerbated its struggles in this tough economic environment.</p><p>It is making improvements in that area, but the company has another unique advertising technology that is delivering strong results: augmented reality (AR). Advertisers can take a photo of a product and instantly create an AR Lens in Snapchat. Then, Snap&#39;s revolutionary Try-On feature enables users to interact with the product with AR; for example, if it&#39;s an item of clothing, they can try it on virtually using their smartphone camera.</p><p>While it&#39;s still early days, many businesses have seen a substantial increase in conversions and average revenue per customer using AR ads on Snap. Plus, the company is now selling a software-as-a-service product to businesses called AR Enterprise Services, which provides all the tools they need to create, manage, and successfully deliver AR content to users, both on and off Snapchat. Importantly, this will help diversify Snap&#39;s revenue away from the volatile advertising business alone.</p><h2 id=\"id_1520903242\">My AI shines, and Snapchat+ hits 4 million subscribers</h2><p>Artificial intelligence (AI) is another area in which Snap is investing heavily. Earlier this year, it launched an in-app chatbot called My AI, which is powered by OpenAI&#39;s ChatGPT platform. Not only can it answer questions; it can even offer gift ideas for friends, or help users plan a holiday. So far, more than 150 million Snapchat users have engaged with the chatbot and they&#39;ve collectively sent a whopping 10 billion messages. </p><p>Snap says those numbers make My AI one of the most actively used chatbots in the industry. It will become more useful over time with continuous training, which could increase the amount of time users are spending on Snapchat. In turn, that will create opportunities to generate more advertising revenue. </p><p>That brings me to Snapchat+, the company&#39;s subscription service that gives users early access to new features on the platform for $3.99 per month. Subscribers were among the first to test My AI earlier this year, and they currently have access to more than 20 different features that regular users don&#39;t. But, most importantly, Snapchat+ is yet another way the company is diversifying its revenue away from advertising.</p><p>It has acquired 4 million subscribers so far, and by my math, that would equate to $191 million in annual recurring revenue. It&#39;s a drop in the bucket considering Snap is expected to deliver $4.1 billion in total revenue this year, but the service is only one year old so there&#39;s still plenty of room for growth. </p><h2 id=\"id_2068987280\">Snap&#39;s revenue shrank in Q2, but there was some good news</h2><p>Snap generated $1 billion in revenue during Q2, which was a 4% drop compared to the same period last year. It gets worse, because the company issued a forecast for the third quarter that suggests revenue could fall 5% year over year. No investor wants to own shares in a shrinking business, hence the near-20% plunge in Snap&#39;s stock the day after it released those results.</p><p>But here&#39;s the good news. Snap&#39;s daily active user base hit a new all-time high of 397 million in Q2. As long as the company continues to attract fresh users, it&#39;s always going to attract advertisers. The key is for Snap to continue developing its technology to drive up efficiency for each ad dollar spent on its platform, so those advertisers spend more money. </p><p>The company has a very strong balance sheet with which to continue investing in those improvements, as it&#39;s sitting on $3.7 billion in cash, equivalents, and marketable securities. Therefore, time is on Snap&#39;s side. </p><p>Broadly speaking, Snap should also experience a boost to its advertising business as the economy improves, which will likely be in 2024. Many experts are predicting that&#39;s when the U.S. Federal Reserve will begin to cut interest rates, which should reignite businesses&#39; marketing budgets. Wall Street analysts are already predicting Snap&#39;s revenue growth will reaccelerate to 15% in 2024, with $4.7 billion coming through the door. </p><p>With Snap&#39;s user base growing and a potentially more favorable environment ahead, buying Snap stock while it&#39;s down 87% from its all-time high might prove to be a great move in the long run.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Snap Stock Sinks: Here's Why That's a Buying Opportunity</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSnap Stock Sinks: Here's Why That's a Buying Opportunity\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-31 09:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/07/30/snap-stock-sinks-heres-why-thats-buying-opportunit/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSSnap is the parent company of popular social media platform Snapchat.It has struggled to generate growth this year as businesses trim their marketing budgets given the tough economic climate...</p>\n\n<a href=\"https://www.fool.com/investing/2023/07/30/snap-stock-sinks-heres-why-thats-buying-opportunit/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4551":"寇图资本持仓","BK4508":"社交媒体","SNAP":"Snap Inc","BK4077":"互动媒体与服务","BK4213":"石油与天然气的勘探与生产","BK4576":"AR","BK4554":"元宇宙及AR概念"},"source_url":"https://www.fool.com/investing/2023/07/30/snap-stock-sinks-heres-why-thats-buying-opportunit/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2355442426","content_text":"KEY POINTSSnap is the parent company of popular social media platform Snapchat.It has struggled to generate growth this year as businesses trim their marketing budgets given the tough economic climate.Snap saw its revenue decline in Q2, and its Q3 forecast wasn't any better, but there were some bright spots for the company.It's no secret the global economy is in rough shape right now. Inflation remains elevated and interest rates continue to rise, which has pressured consumers' spending power. As a result, businesses have slashed their marketing budgets for fear of a lesser return on their investment.Companies in digital industries like social media rely on advertising to generate revenue, so the last 12 months haven't been easy for them. Snap, which is the parent company of Snapchat, has struggled more than most. Investors sent its stock price plunging almost 20% the day after it released its financial results for the second quarter of 2023 (ended June 30), and it's now down 87% from its all-time high.Snap's advertising revenue sank once again, and it issued a weak forecast for the coming third quarter. But there were bright spots, so here's why the steep decline in Snap stock might be a great buying opportunity for the long term. Snap is reimagining the advertising experienceSnap is still working on building its advertising technology back up after Apple made changes to its privacy rules in 2021, which made it significantly harder for social media companies to track their users' activity across the internet. As a result, Snap's ad inventory hasn't been as attractive to businesses, which has exacerbated its struggles in this tough economic environment.It is making improvements in that area, but the company has another unique advertising technology that is delivering strong results: augmented reality (AR). Advertisers can take a photo of a product and instantly create an AR Lens in Snapchat. Then, Snap's revolutionary Try-On feature enables users to interact with the product with AR; for example, if it's an item of clothing, they can try it on virtually using their smartphone camera.While it's still early days, many businesses have seen a substantial increase in conversions and average revenue per customer using AR ads on Snap. Plus, the company is now selling a software-as-a-service product to businesses called AR Enterprise Services, which provides all the tools they need to create, manage, and successfully deliver AR content to users, both on and off Snapchat. Importantly, this will help diversify Snap's revenue away from the volatile advertising business alone.My AI shines, and Snapchat+ hits 4 million subscribersArtificial intelligence (AI) is another area in which Snap is investing heavily. Earlier this year, it launched an in-app chatbot called My AI, which is powered by OpenAI's ChatGPT platform. Not only can it answer questions; it can even offer gift ideas for friends, or help users plan a holiday. So far, more than 150 million Snapchat users have engaged with the chatbot and they've collectively sent a whopping 10 billion messages. Snap says those numbers make My AI one of the most actively used chatbots in the industry. It will become more useful over time with continuous training, which could increase the amount of time users are spending on Snapchat. In turn, that will create opportunities to generate more advertising revenue. That brings me to Snapchat+, the company's subscription service that gives users early access to new features on the platform for $3.99 per month. Subscribers were among the first to test My AI earlier this year, and they currently have access to more than 20 different features that regular users don't. But, most importantly, Snapchat+ is yet another way the company is diversifying its revenue away from advertising.It has acquired 4 million subscribers so far, and by my math, that would equate to $191 million in annual recurring revenue. It's a drop in the bucket considering Snap is expected to deliver $4.1 billion in total revenue this year, but the service is only one year old so there's still plenty of room for growth. Snap's revenue shrank in Q2, but there was some good newsSnap generated $1 billion in revenue during Q2, which was a 4% drop compared to the same period last year. It gets worse, because the company issued a forecast for the third quarter that suggests revenue could fall 5% year over year. No investor wants to own shares in a shrinking business, hence the near-20% plunge in Snap's stock the day after it released those results.But here's the good news. Snap's daily active user base hit a new all-time high of 397 million in Q2. As long as the company continues to attract fresh users, it's always going to attract advertisers. The key is for Snap to continue developing its technology to drive up efficiency for each ad dollar spent on its platform, so those advertisers spend more money. The company has a very strong balance sheet with which to continue investing in those improvements, as it's sitting on $3.7 billion in cash, equivalents, and marketable securities. Therefore, time is on Snap's side. Broadly speaking, Snap should also experience a boost to its advertising business as the economy improves, which will likely be in 2024. Many experts are predicting that's when the U.S. Federal Reserve will begin to cut interest rates, which should reignite businesses' marketing budgets. Wall Street analysts are already predicting Snap's revenue growth will reaccelerate to 15% in 2024, with $4.7 billion coming through the door. With Snap's user base growing and a potentially more favorable environment ahead, buying Snap stock while it's down 87% from its all-time high might prove to be a great move in the long run.","news_type":1},"isVote":1,"tweetType":1,"viewCount":32,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":308183796183080,"gmtCreate":1716262108169,"gmtModify":1716262111841,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"Short! 😜","listText":"Short! 😜","text":"Short! 😜","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/308183796183080","repostId":"2437459219","repostType":2,"repost":{"id":"2437459219","pubTimestamp":1716260655,"share":"https://www.laohu8.com/m/news/2437459219?lang=&edition=full","pubTime":"2024-05-21 11:04","market":"nz","language":"en","title":"Snap: Recovering From A Temporary Setback, But Worth The Wait","url":"https://stock-news.laohu8.com/highlight/detail?id=2437459219","media":"seekingalpha","summary":"Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.Snap's growth is now rebounding,","content":"<ul style=\"\"><li><p>Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.</p></li><li><p>Snap's growth is now rebounding, though, which the company has attributed to a stronger demand environment and improving ad performance.</p></li><li><p>Despite this, Snap has genuine issues which are yet to be resolved. Of particular concern are rising infrastructure costs and enormous R&amp;D investments with unclear payoffs.</p></li><li><p>The stock could move higher if the company's fundamentals improve, but it is difficult to get excited about Snap's long-term prospects unless its efficiency improves.</p></li></ul><p>Snap's financial performance continues to rebound after a difficult 2-year period which has been driven by a combination of macro headwinds and privacy initiatives impacting digital advertising. While Snap's near-term future is highly dependent on macro conditions remaining stable, the company should continue to generate solid growth with improving margins over a longer time frame.</p><p>The last time I wrote about Snap in December, I suggested that while its fundamentals were improving, the company's valuation would probably limit near-term upside. Despite the recent jump, Snap's share price is still down since then. While I feel that the company has been unfairly maligned, Snap also has genuine issues, and as a result, I find it difficult to get excited about the stock outside periods of excessive investor pessimism.</p><h2 id=\"id_1052204787\">Market Conditions</h2><p>A post-pandemic hangover, tighter financial conditions and difficulties wrought by privacy initiatives have caused significant difficulties for many digital advertising companies in recent years. There has a broad-based reacceleration in recent quarters, though, which is somewhat surprising given that macro uncertainty remains elevated and retail sales are weak. Much of this is likely to be a result of the ecosystem adjusting to privacy changes. Some companies have recovered targeting and attribution faster than others, though, and Snap has been a laggard in this regard. As a result, it could continue to see relatively strong performance in coming quarters.</p><p>Snap has stated that the improvement in market conditions in Q1 was broad-based, with verticals like CPG, ecommerce, restaurants, and travel performing particularly well. Demand for brand advertising picked up, and Snap's direct response business accelerated on the back of improved ad performance. The direct response business is expected to continue improving in Q2, but there will be some seasonality headwinds.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3b332628fd86e276dfc91f2af2fab8da\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 1: Social Media Company Revenue (source: Created by author using data from company reports)</p><p>It is worth noting that social media could continue to face headwinds in coming years as its impact on society becomes more widely recognized. For example, a UK regulator has proposed social media rules which aim to protect children from harmful content, which appears to be targeted at recommendation algorithms. The Australian Prime Minister has called for a social media age limit to protect the mental health of children, with Labor pledging 6.5 million AUD towards an age verification trial and also launching an inquiry into social media platforms. The South Australian government is also pushing for an outright ban on social media for children, although it is not clear yet whether this is even feasible. Under the proposal, children aged 14 and 15 would require parental consent to access a social media account. This could be particularly harmful for Snap, as its user base skews towards younger people.</p><h2 id=\"id_2974577933\">Snap Business Updates</h2><p>Snap currently has 3 strategic priorities:</p><ul style=\"\"><li><p>Diversifying revenue and accelerating growth</p></li><li><p>User growth and engagement</p></li><li><p>Augmented reality</p></li></ul><p>Stronger revenue growth in the first quarter was attributed to improvements to the advertising platform and increased demand. Snap has been trying to increase ROAS on its platform through product innovation. This is largely based around introducing privacy safe signals and investing in larger models. For example, Snap is now investing around 100 million USD per quarter in machine learning.</p><p>There are aspects of Snap’s platform that are likely to be appealing to advertisers (user demographics, differentiated products) but the company still needs to further improve ad performance. It is questionable whether Snap has access to the first-party data necessary to replicate the success of Meta, though.</p><p>Snap also continues to attract demand to its platform. The company's self-serve SMB product contributed to an 85% YoY increase in the number of SMB advertisers on the platform. Snap is also benefitting from the introduction of third-party demand. Snap has an ad partnership with Amazon, which aims to bring relevant products to Amazon shoppers inside the Snapchat experience.</p><p>Snapchat+ now has approximately 9 million subscribers and continues to provide an incremental source of high margin revenue. Snapchat+ provides subscribers access to exclusive, experimental, and pre-release features, with generative AI potentially increasing its appeal.</p><h2 id=\"id_517496098\">Financial Analysis</h2><p>Snap’s revenue increased 21% YoY in the first quarter to 1.195 billion USD. Direct response advertising revenue increased 17% YoY, driven by improving ROAS for advertising partners. Brand advertising revenue grew 12% YoY on the back of a stronger demand environment. Other revenue increased 194% YoY to 87 million USD, primarily due to Snapchat+ subscription revenue.</p><p>Snap expects 431 million DAUs and 1.225-1.255 billion USD revenue in the second quarter, implying 15-18% YoY revenue growth.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/338271c367888b5f88532a90292775ab\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 2: Snap Revenue Growth (source: Created by author using data from Snap)</p><p>Snap’s DAUs increased 10% YoY to 422 million in the first quarter. This growth is mainly coming from outside of North America and Europe, meaning its impact on revenue growth is currently muted. Snap also continues to drive increased engagement, with the number of viewers and total content consumption time increasing versus the prior year period. The company is particularly focused on engagement in North America and Europe. I have previously suggested that Snap could be approaching saturation in its more mature markets, but that engagement still provides a large opportunity, as the platform has over 750 million monthly active users.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/1004c2bd1998bdc476a93d8e1364e1c3\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 3: Snap DAUs (source: Created by author using data from Snap)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aa2fa84158489ab7826331a7c6bde39f\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 4: Snap ARPU (source: Created by author using data from Snap)</p><p>Snap’s gross profit margin continued its recent slide in the first quarter, which was largely due to rising infrastructure costs. Snap has suggested that this is due to investments in machine learning to support its direct response ad business. Snap is also facing margin headwinds from the growth of users in lower ARPU regions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/75c731cd1bc6292fd7b3911a2f9a1e75\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 5: Snap Gross Profit Margin (source: Created by author using data from Snap)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6e9b20b63057ec41a150d5145e2d1156\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 6: Snap Infrastructure Cost per User (source: Created by author using data from Snap)</p><p>Adjusted operating expenses increased 5% YoY to 579 million USD, supported by cost-cutting initiatives. Headcount was down 7% YoY at the end of the first quarter, although this was offset by 70 million USD of costs related to restructuring initiatives. Operating expenses continue to be driven by R&amp;D.</p><p>Snap continues to generate modest free cash flow, but this is somewhat meaningless given the amount of stock-based compensation. SBC was down 60 million USD YoY in the first quarter, but the company's share count increased 3.8% YoY. Snap is anticipating 1.13-.12 billion USD stock-based compensation in 2024, putting SBC per employee at around 240,000 USD. The distribution of SBC is likely to be highly skewed, but Snap's costs still appear to be excessive.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8e51db46d8fdc49b7e99037c58616916\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 7: Snap Operating Profit Margin (source: Created by author using data from Snap)</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f898f3643365db6de25c49f39fd748a8\" tg-width=\"640\" tg-height=\"418\"></p><p>Figure 8: Snap Operating Expenses (source: Created by author using data from Snap)</p><p>Snap repurchased 100 million USD of its 2025 convertible notes and 351 million USD of its 2026 convertible notes in the first quarter. This was done at prices below par value.</p><p>Snap recently announced a planned issuance of 650 million USD of convertible senior notes due 2030. The initial purchasers will also have an option to buy up to an additional 100 million USD notes. The notes will accrue 0.5% interest payable semi-annually in arrears. Proceeds will be directed towards general corporate purposes and repurchasing previously issued convertible notes.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d5e91788d1c188da46a5f4baa600324e\" tg-width=\"590\" tg-height=\"438\"></p><p>Figure 9: Snap Outstanding Convertible Notes (source: Snap)</p><h2 id=\"id_2676019807\">Conclusion</h2><p>While Snap has large losses and continues to dilute existing shareholders through SBC, the company has a large cash balance which it has been using to repurchase shares. Since Q3 2022, Snap has repurchased 145 million shares at an average price of 9.86 USD per share (total cost of approximately 1.4 billion USD). While this is largely just an attempt to neutralize the impact of SBC, these repurchases should end up working out fairly well.</p><p>Snap also still has approximately 2.9 billion USD in cash and marketable securities, providing the company with flexibility going forward. This cash balance is likely to be viewed more favorably given that Snap is now cash flow positive.</p><p>After the recent increase in share price, Snap's valuation is now less forgiving. Despite this, the stock can move higher provided that the company's fundamentals continue to improve. Increasing ad ROAS and a more stable demand environment should be supportive of growth going forward. Snap's losses remain large, though, and there is little evidence that the company is becoming more disciplined.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/deba74513e74d0a9d8211be68a4105d4\" tg-width=\"640\" tg-height=\"195\"></p><p>Figure 10: Snap EV/S Ratio (source: Seeking Alpha)</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Snap: Recovering From A Temporary Setback, But Worth The Wait</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSnap: Recovering From A Temporary Setback, But Worth The Wait\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-21 11:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4694669-snap-stock-recovering-from-temporary-setback-but-worth-wait-hold><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.Snap's growth is now rebounding,...</p>\n\n<a href=\"https://seekingalpha.com/article/4694669-snap-stock-recovering-from-temporary-setback-but-worth-wait-hold\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SNAP":"Snap Inc","BK4554":"元宇宙及AR概念","BK4077":"互动媒体与服务","BK4551":"寇图资本持仓","BK4508":"社交媒体","BK4576":"AR"},"source_url":"https://seekingalpha.com/article/4694669-snap-stock-recovering-from-temporary-setback-but-worth-wait-hold","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2437459219","content_text":"Snap's business has been significantly impacted by the macro environment and privacy initiatives in recent years and the company has been unfairly maligned as a result.Snap's growth is now rebounding, though, which the company has attributed to a stronger demand environment and improving ad performance.Despite this, Snap has genuine issues which are yet to be resolved. Of particular concern are rising infrastructure costs and enormous R&D investments with unclear payoffs.The stock could move higher if the company's fundamentals improve, but it is difficult to get excited about Snap's long-term prospects unless its efficiency improves.Snap's financial performance continues to rebound after a difficult 2-year period which has been driven by a combination of macro headwinds and privacy initiatives impacting digital advertising. While Snap's near-term future is highly dependent on macro conditions remaining stable, the company should continue to generate solid growth with improving margins over a longer time frame.The last time I wrote about Snap in December, I suggested that while its fundamentals were improving, the company's valuation would probably limit near-term upside. Despite the recent jump, Snap's share price is still down since then. While I feel that the company has been unfairly maligned, Snap also has genuine issues, and as a result, I find it difficult to get excited about the stock outside periods of excessive investor pessimism.Market ConditionsA post-pandemic hangover, tighter financial conditions and difficulties wrought by privacy initiatives have caused significant difficulties for many digital advertising companies in recent years. There has a broad-based reacceleration in recent quarters, though, which is somewhat surprising given that macro uncertainty remains elevated and retail sales are weak. Much of this is likely to be a result of the ecosystem adjusting to privacy changes. Some companies have recovered targeting and attribution faster than others, though, and Snap has been a laggard in this regard. As a result, it could continue to see relatively strong performance in coming quarters.Snap has stated that the improvement in market conditions in Q1 was broad-based, with verticals like CPG, ecommerce, restaurants, and travel performing particularly well. Demand for brand advertising picked up, and Snap's direct response business accelerated on the back of improved ad performance. The direct response business is expected to continue improving in Q2, but there will be some seasonality headwinds.Figure 1: Social Media Company Revenue (source: Created by author using data from company reports)It is worth noting that social media could continue to face headwinds in coming years as its impact on society becomes more widely recognized. For example, a UK regulator has proposed social media rules which aim to protect children from harmful content, which appears to be targeted at recommendation algorithms. The Australian Prime Minister has called for a social media age limit to protect the mental health of children, with Labor pledging 6.5 million AUD towards an age verification trial and also launching an inquiry into social media platforms. The South Australian government is also pushing for an outright ban on social media for children, although it is not clear yet whether this is even feasible. Under the proposal, children aged 14 and 15 would require parental consent to access a social media account. This could be particularly harmful for Snap, as its user base skews towards younger people.Snap Business UpdatesSnap currently has 3 strategic priorities:Diversifying revenue and accelerating growthUser growth and engagementAugmented realityStronger revenue growth in the first quarter was attributed to improvements to the advertising platform and increased demand. Snap has been trying to increase ROAS on its platform through product innovation. This is largely based around introducing privacy safe signals and investing in larger models. For example, Snap is now investing around 100 million USD per quarter in machine learning.There are aspects of Snap’s platform that are likely to be appealing to advertisers (user demographics, differentiated products) but the company still needs to further improve ad performance. It is questionable whether Snap has access to the first-party data necessary to replicate the success of Meta, though.Snap also continues to attract demand to its platform. The company's self-serve SMB product contributed to an 85% YoY increase in the number of SMB advertisers on the platform. Snap is also benefitting from the introduction of third-party demand. Snap has an ad partnership with Amazon, which aims to bring relevant products to Amazon shoppers inside the Snapchat experience.Snapchat+ now has approximately 9 million subscribers and continues to provide an incremental source of high margin revenue. Snapchat+ provides subscribers access to exclusive, experimental, and pre-release features, with generative AI potentially increasing its appeal.Financial AnalysisSnap’s revenue increased 21% YoY in the first quarter to 1.195 billion USD. Direct response advertising revenue increased 17% YoY, driven by improving ROAS for advertising partners. Brand advertising revenue grew 12% YoY on the back of a stronger demand environment. Other revenue increased 194% YoY to 87 million USD, primarily due to Snapchat+ subscription revenue.Snap expects 431 million DAUs and 1.225-1.255 billion USD revenue in the second quarter, implying 15-18% YoY revenue growth.Figure 2: Snap Revenue Growth (source: Created by author using data from Snap)Snap’s DAUs increased 10% YoY to 422 million in the first quarter. This growth is mainly coming from outside of North America and Europe, meaning its impact on revenue growth is currently muted. Snap also continues to drive increased engagement, with the number of viewers and total content consumption time increasing versus the prior year period. The company is particularly focused on engagement in North America and Europe. I have previously suggested that Snap could be approaching saturation in its more mature markets, but that engagement still provides a large opportunity, as the platform has over 750 million monthly active users.Figure 3: Snap DAUs (source: Created by author using data from Snap)Figure 4: Snap ARPU (source: Created by author using data from Snap)Snap’s gross profit margin continued its recent slide in the first quarter, which was largely due to rising infrastructure costs. Snap has suggested that this is due to investments in machine learning to support its direct response ad business. Snap is also facing margin headwinds from the growth of users in lower ARPU regions.Figure 5: Snap Gross Profit Margin (source: Created by author using data from Snap)Figure 6: Snap Infrastructure Cost per User (source: Created by author using data from Snap)Adjusted operating expenses increased 5% YoY to 579 million USD, supported by cost-cutting initiatives. Headcount was down 7% YoY at the end of the first quarter, although this was offset by 70 million USD of costs related to restructuring initiatives. Operating expenses continue to be driven by R&D.Snap continues to generate modest free cash flow, but this is somewhat meaningless given the amount of stock-based compensation. SBC was down 60 million USD YoY in the first quarter, but the company's share count increased 3.8% YoY. Snap is anticipating 1.13-.12 billion USD stock-based compensation in 2024, putting SBC per employee at around 240,000 USD. The distribution of SBC is likely to be highly skewed, but Snap's costs still appear to be excessive.Figure 7: Snap Operating Profit Margin (source: Created by author using data from Snap)Figure 8: Snap Operating Expenses (source: Created by author using data from Snap)Snap repurchased 100 million USD of its 2025 convertible notes and 351 million USD of its 2026 convertible notes in the first quarter. This was done at prices below par value.Snap recently announced a planned issuance of 650 million USD of convertible senior notes due 2030. The initial purchasers will also have an option to buy up to an additional 100 million USD notes. The notes will accrue 0.5% interest payable semi-annually in arrears. Proceeds will be directed towards general corporate purposes and repurchasing previously issued convertible notes.Figure 9: Snap Outstanding Convertible Notes (source: Snap)ConclusionWhile Snap has large losses and continues to dilute existing shareholders through SBC, the company has a large cash balance which it has been using to repurchase shares. Since Q3 2022, Snap has repurchased 145 million shares at an average price of 9.86 USD per share (total cost of approximately 1.4 billion USD). While this is largely just an attempt to neutralize the impact of SBC, these repurchases should end up working out fairly well.Snap also still has approximately 2.9 billion USD in cash and marketable securities, providing the company with flexibility going forward. This cash balance is likely to be viewed more favorably given that Snap is now cash flow positive.After the recent increase in share price, Snap's valuation is now less forgiving. Despite this, the stock can move higher provided that the company's fundamentals continue to improve. Increasing ad ROAS and a more stable demand environment should be supportive of growth going forward. Snap's losses remain large, though, and there is little evidence that the company is becoming more disciplined.Figure 10: Snap EV/S Ratio (source: Seeking Alpha)","news_type":1},"isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":260056777781416,"gmtCreate":1704500963329,"gmtModify":1704506511885,"author":{"id":"4114695686811602","authorId":"4114695686811602","name":"Lolagogogo","avatar":"https://community-static.tradeup.com/news/46842dc80fc7c62cc1d4d655a0b2419f","crmLevel":8,"crmLevelSwitch":0},"themes":[],"htmlText":"I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!","listText":"I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!","text":"I recommend Nike because it is cheap at currrent levels and it never goes out of style (economic moat). Just do it!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/260056777781416","isVote":1,"tweetType":1,"viewCount":52,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}