$SNAP - a Good Price & Good Company ? Better Than $META ?
My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ?
"Why not both" I asked myself ?
Wouldn't there be more upsides comparatively speaking ?
Having put the theory to test on (1) credit cards companies, (2) EV company, (3) entertainment company (4) technology companies and (5) financial institutions; its time to try it out on a Social Media company, no ? LOL
Gonna put $Snap Inc(SNAP)$ to the test & see if it fits the bill.
Sidetrack: Stocks that I have covered so far. Interested ? Click to read. Please "Like" to show some love okie ? Thanks !
- General Motors
- Visa Inc.
- Tesla Inc.
- Netflix .
- Mastercard.
- Intel.
- Microsoft.
- JP Morgan.
- Morgan Stanley.
- An American multi-media company
- Found in Sep 2011 (an 11 yo young company)
- Founders were Evan Spiegel, Bobby Murphy and Reggie Brown
- Its core activities - developed & maintains technological products and services, namely Snapchat, Spectacles and Bitmoji.
- Apps original name was Picaboo, then christened as "Snapchat" and finally on 26 Sep 2016 renamed as "Snap" until present day.
- It was publicly listed in 02 Mar 2017 at $24 per share; making its market cap $33 Billion on its debut
- It grew to its current size thru very strategic acquisition of business-related companies and integrated their products seamlessly with Snap
In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did Snap Inc fare ?
Current stock price < 02 Feb 2022 stock price by -67.66%, Dismal !!
Snap Inc - Summary
- Total Revenue came in at $1.299 Billion vs $1.297 Billion (Q4 2021); thats a +0.1% QoQ.
- Net loss (GAAP) came in at -$288 Million vs $22,550 Million (Q4 2021); thats a -1,379% QoQ. ** "Note" - is net loss is improving quarterly in Year 2022 (Refer to below chart).
- Loss per share (GAAP) was -$0.18 vs $0.01 (Q4 2021); thats a -1,900% QoQ.
- Earnings per share (non GAAP) was $0.14 vs $0.22 (Q4 2021); thats a -36.36% QoQ
Snap Inc - Net Income / Loss - Quarterly charting - gradual improvement ?
Snap Inc - Revenue breakdown by Region
- As Snap is a social media company, its viability will be based on its ability to penetrate every mobile phone users; estimated to be 7.26 Billion handphones worldwide.
- Above breakdown clearly shows that Snap's growth outside of US is still relatively healthy.
- However its prospect in the US is not looking bright
- Could this be a case of Tik Tok (English version of China's Dou Yin apps) being a darling and dampener in the socal media sphere ?
Snap - Operating Statistics
- As with any social media company / apps - a key performance indicator is the number of daily active users (DAU)
- Snap's Q4 2022 DAU came in at 375 Million vs 319 Million (Q4 2021); thats a +17.55% gain in customer base.
Snap's CEO on Q4 2022 Results
This quarter we took action to further focus our business on our 3 strategic priorities; growing our community and deepening their engagement with our products, re-accelerating and diversifying our revenue growth and investing in augmented reality. The growth of our community to 363 Million daily active users, an increase of 19% YoY continues to expand our long-term opportunity. Snap, CEO, Evan Spiegel...
.
Is SNAP - Both A Good Price and Good Company ?
In his letter to shareholders, CEO Evan Spiegel has raised the following pointers :
- Refocus Snap's investments to support its 3 strategic priorities: (1) grow the community & deepend members' engagement with Snap's products, (2) accelerating and diversifying Snap's revenue growth, and (3) investing in the future of augmented reality.
- Snap has an outreach of > 75% of members in the "13- to 34 year-olds" category; in more than 20 countries.
- Whatsmore, the 20 countries represent > 50% of Global Digital Advertising spend.
- Continued on the path to sustainable profitability by generating $378 million of adjusted EBITDA in 2022, that is 3rd consecutive year of positive adjusted EBITDA.
- Generated $55 Million of free cash flow (FCF) in 2022; that is 2nd consecutive year of positive FCF. See below diagram for details.
- Q4 2022 also saw the introduction of a subscription based account Snapchat+; that has grown to > 2 Million subscribers in the quarter.
- It is also investing in Snap's augmented reality (AR) platform, making significant progress in building a differentiated AR offering that provides significant value to Snap's community, developers, and businesses.
Snap's - Free Cash Flow table
- Do you think Snap will be able to better and improve itself in 2023 ?
- Do you think with the impending Covid & Lock Down complete removal / abolishment; it will help everyone to get back to pre-Covid pandemic situation ?
Please "LIKe" this post ok. Tks. The rating is very important to me !
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
So is snap a good option?
Tks for reading my post.
Pls " LIKe" it ok. Tks.
The rating is very important to me. Tks tks!!