$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 !

  • 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...

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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 ?

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# Profit From Good Company or Good Price?

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  • DdAlpha1
    ·2023-02-26

    So is snap a good option?

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    • JC888
      Its still finding its "bottom out" support price level... still monitoring for now..

      I have new on Under Armour.  Take a look ? Pls LIKe ok. Tks.

      https://ttm.financial/post/9957532904
      2023-02-26
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  • MaudNelly
    ·2023-02-02
    well, What is the main income for Snapchat?
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    • JC888
      Advertising fees
      2023-02-02
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  • Maria_yy
    ·2023-02-05
    I'm looking forward to SNAP improving profitability this year
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  • ElvisMarner
    ·2023-02-05
    The decline in SNAP's stock price is simply disappointing to me
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  • BellaFaraday
    ·2023-02-05
    To be honest, I don't think it's a good choice to invest in the multimedia industry
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  • HilaryWilde
    ·2023-02-05
    Its revenue growth is not satisfying investors
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  • MortimerDodd
    ·2023-02-05
    The development of sanp is highly uncertain
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  • JC888
    ·2023-02-02
    Hi
    Tks for reading my post.
    Pls " LIKe" it ok. Tks.
    The rating is very important to me. Tks tks!!
    Reply
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  • BarbaraWillard
    ·2023-02-02
    After the covid period, it will help users to get back to the status in 2019.
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  • MorganHope
    ·2023-02-02
    Snap may not be able to improve in 2023 as rivals are also strong.
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  • Michaelcool
    ·2023-02-05
    Oooo
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  • Cing
    ·2023-02-03
    👍
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  • hellohellome
    ·2023-02-02
    👍
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  • Yongqi
    ·2023-02-02
    K
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  • zoopy
    ·2023-02-02
    [Heart]
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  • Pettan
    ·2023-02-02
    Noted
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  • Hs
    ·2023-02-02
    Ok
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  • neosh
    ·2023-02-02
    👍
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  • NP_YT
    ·2023-02-02
    Ok
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  • Chris1368
    ·2023-02-02
    Ok
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