To The Moon

The decline in US stocks since this bear market has shocked me. First, there was the epic plunge in Chinese stocks, with many stocks down 90%. But because these companies don't have large market caps and mainly operated in China, the crash didn't make much of a splash. But since 2022, giants, including $Meta Platforms, Inc.(FB)$ , $Netflix(NFLX)$ , and $NVIDIA Corp(NVDA)$ , have plunged much. Some giants have even plunged by more than 20% in a single day, leaving investors jaw-dropping. Now, $Snap Inc(SNAP)$ has also joined the plunge camp, surprisingly dropping 43% overnight. At its peak in 2021, $Snap Inc(SNAP)$ share price reached $83, with a market capitalization of over $130 billion. In just 8 months, snap shares are back at $13, a drop of more than 85%! Such a drop can exceed any stock market crash in history! If someone buys it at a high level, which may lead to destruction. For $Snap Inc(SNAP)$ , I do not know much about its operation, so we will not talk about the company's own problems, and simply talk about the ideas of the crash. In the stock investment, there are thousands of thousands of listed companies, but can be simply divided into two categories: the unchanging companies and the ones seeking change to survive. Constants: There are many companies that do not change, such as the $Coca-Cola(KO)$ , in such a bad market this year, but still made an 8% gain, a record high! The biggest gap between Coca-Cola and SNAP, and even $Apple(AAPL)$ , is probably the change and the constant. The formula of $Coca-Cola(KO)$ is unchanging, the needs of the user is relatively unchanging. Variants: Social APP and smartphones, on the other hand, are constantly changing. For social software, sometimes you may be defeated by be the different types of business, such as the failure of $Meta Platforms, Inc.(FB)$ , TikTok is also an important factor. Just like in the first quarter of this year, $TENCENT(00700)$ advertising business have plummeted. Racer, on the other hand, with the trend of short video advertising, surprisingly still managed to maintain a high double-digit growth. Similarly, the explosion of Jitterbug and Racer has crowded out a lot of users' time, and $KUAISHOU-W(01024)$ active users are already using more than 2 hours a day! Everyone has 24 hours in a day, and the more time you spend on short videos, the less time you may have to play games. And who can say that Douyin and Tencent are not competitors? My thoughts on SNAP crash The poor performance of $Snap Inc(SNAP)$ this time is also a case of the weak economy, and advertisers choose the hotter TikTok. In a competitive environment, only the companies that do better will be evergreen. And it is too difficult for a company to be good all the time. Even with Apple, which has an exclusive operating system, who can be sure that Apple's market share will not be eroded if the White House does not step in to suppress Huawei? Then look at the domestic car-making new power. They not only have to compete with traditional fuel car companies, but also face $Apple(AAPL)$ , $XIAOMI-W(01810)$ and companies enter this industry to build cars. Competitors continue to pour in, and invest huge amounts of research and development costs to build a new car, may not always be able to fire. On the contrary, Hermes, LV and other luxury companies, a classic bag can be sold for decades. They just need to stay on track to win. And new luxury goods want to compete, the difficulty is comparable to the sky. Conclusion Unchanged company, the stock price are like long bull, slow bull. Most investors also know them, but they are more likely to invest in growth stocks like $Snap Inc(SNAP)$ . The reason for this, or Warren Buffett said: most people are not willing to slowly become rich.