To The Moon

Rising inflation is a pain. Companies will need to look for ways to cut costs to maintain profitability. Quickest way to do it is to cut their advertising budget, probably followed by welfare or even headcount. Social media companies like Snap depends heavily on advertising for their revenue and will be hit very hard.

Like other social media apps, Snap faces tough competition to lure users into staying using their app. The advertisers will only pour in their money if the user population is large enough to justify putting up the advertisement. While the management pointed out that the challenges are enormous ahead, will they come out the solutions while enjoying a big paycheck? 

Awwww $Snap Inc(SNAP)$! How quaint. When Snap dropped to the lower tens and hit a p/s of 4 which was historically among its lowest, I thought 'here we have an interesting valuation play' of a stock that may have a future in ad tech. That was until the latest earnings release. To be honest, contrary to what most people say and reports, when you analyse their top and bottom lines, they did pretty decent. At leastin my opinion. They actually beat street estimates. So fundamentally they are pretty ok. But what I do not like and what I believed the market saw was the smokescreen by management. Let me explain. I will cut to the chase because the results are already summarised succinctly by many. It is the the lack of guidance by

$Snap Inc(SNAP)$My guess is reduced revenue from advertising, partly caused by restrictions in taking users online as well as economy not doing well in general. When economy is not doing well, a lot of companies will face falling revenues. When that happens, one of the easiest ways to cut cost would be to cut down on advertising. When the demand for advertising goes down, my guess is social media companies will take the biggest hit as their revenues are largely derived from advertising. Hence, Snap snapped.Pardon my pun lol.

Investors should pay attention to the financial report of big techs this week.$Microsoft(MSFT)$$Alphabet(GOOG)$$Meta Platforms, Inc.(META)$$Apple(AAPL)$$Amazon.com(AMZN)$ It could guide the market on the rest of the quarter.

$Snap Inc(SNAP)$Recent volatility in the equity market is not for the faint-hearted. The market has not been forgiving of companies that fell short on earnings expectations, as exemplified by the plummeting of SNAP's share price on third-quarter revenue miss, even though a low bar was set by Wall Street, given the social media platform’s underwhelming results in the past quarters. Worsening investors’ sentiments was the company’s dismal statement that its business may deteriorate further as the company struggles to navigate through this challenging quarter in the midst of prevailing macro headwinds. Spending trims and restructuring have not appeared to help much, as SNAP struggles with falling revenue with advertisers holding back on the back of a

Meta Platforms sinks as BofA downgrades on worries over increased ad spend pressure Meta Platforms ($Meta Platforms, Inc.(META)$ fell on Monday as Bank of America downgraded the tech giant on worries over increased pressure on advertising spending. Analyst Justin Post moved his rating on Meta (META) to neutral from buy noting that checks into the stability of ad revenue indicated an in-line quarter. However, concerns over budget cuts next year and the weakness seen in Snap's (SNAP) revenues may weigh on sentiment. "While [fourth quarter] & 2023 expectations have been lowered, we expect advertiser budget cuts in early 2023 to weigh on sentiment and drive added uncertainty on post-IDFA changes and Reels transition," Post wrote in a note to clie

$Snap Inc(SNAP)$If data privacy restrictions/ legislations continue social tracking companies like snap may be in deep trouble in future. need to remodel their business in some way. 

Shares of $Snap Inc(SNAP)$ fell 28% Friday after investors continued to digest the company's third-quarter earnings report that was released Thursday night. Shares are now trading at levels not seen since February 2019. The company posted an unexpected profit, but revenue missed estimates slightly, coming in at $1.13 billion versus the $1.14 billion expected, according to a Refinitiv survey of analysts. The social media company has suffered as a result of the struggling online advertising market. Apple's data privacy update in 2021 has limited the ability of social media companies to track users online, which has continued to hurt the company. Bernstein analyst Mark Shmulik downgraded the stock Friday morning to market perform from outperform and

Snap is a dead company. Only one popular app (Snapchat) which is not enough to generate revenue. I don't know anyone that use this app now. @Tiger_chat

$Snap Inc(SNAP)$has fallen to the resistance zone at 8.50 region. if this support doesn't hold then next support is at 5.10. the orange line is  $US2Y(US2Y.BOND)$ which is sensitive to fed interest rate, it retreated from its new high at 4.64 when some members of fed hesitated on further 75bps hikes in dec. snap reduced its intraday losses to form a doji. you can see that snap is badly affected by the rapid interest rate hikes which affected its ad revenue. hopefully its share buyback will provide some support.  application of automatic investment system, this is a good entry point if you do not own snap yet, and add shares equivalent to your paper losses if you own snap. bon weekend et bo

one reason it has missed the target is because of the data privacy which has restricted these social media companies from tracking the activities of users online.

$Snap Inc(SNAP)$is a company that attracts more of the younger generation of users and faces strong competitors like tik tok and instagram. While snap may not be doing well now, they should not be underestimated for their potentional to grow as they are not just a social media company. Snap is also a leader in the AR technology which is still a growing sector. With the current market conditions tightening. Companies have less budget to spend on advertising and those much of those advertising that are deemed unnecessary are cut from budget. Given that there is a need to cut budget on advertising, companies would choose the major and more reputable companies to do their advertising for them like google or facebook, because of this reduction in

$Snap Inc(SNAP)$It still boils down to fundamental. Looking at the past 5 years financial, revenues have increased however the business remain unprofitable. Operating cashflow and free cashflow were negative 4 out of 5 years. Other financial ratio like gross margin, net margin, ROE, ROIC etc are all negative. That says much about the company in one glance with further digging. Let's look at the technical chart. It had moved from 83.34 peak to current low of 7.76 , I won't be surprised if it continues to trend down to 4.82 last seen in Dec 2018. Yes, all ad-related businesses will be affected by economic downturn hence there are job cutting measure by these firms to save costs. It's not new, it's all part of business cycle. However, that does

$Snap Inc(SNAP)$similar to Tweeter

It is certainly doom and gloom for $Snap Inc(SNAP)$ as its share price plummeted 28%  ever since it announced its disappointing Q322 results on Thursday.   Snap is now down a massive 85% in just 1 year from a high of 77.52 to a low of 7.76.  Is Snap a BUY or a Falling Knife?  Snap has posted its slowest revenue growth since its IPO 5 years ago as advertisers cut spending amid high inflation and rising interest rates.  Snap 3Q22 sales increased 6% to USD 1.13 billion, slightly short of analysts' estimate of USD 1.14 billion.  However Snap is facing strong headwinds currently.  New privacy settings from Apple that require all social media companies to get smartphone users' permission for tr

$Snap Inc(SNAP)$ Snap shares plunged over 25% in extended trading on Thursday to end a five-day winning streak, and have yet to recover from the previous quarter’s earnings disappointment. The app maker missed on both ends again in Q2, reporting LPS of $0.02 on revenues that were up 13% (short of the 20%-25% previously forecast) at $1.11bn. They woulda got away with it too, if it weren’t for those meddling Apple rules. The word “headwinds” appeared a lot, largely in reference to Apple’s recent privacy changes, which have “upended more than a decade of advertising industry standards”. Other ad-dependent platforms declined in fear of a similar fate, including Meta, Twitter, Alphabet and Pinterest. The good news is that daily active users (DAUs) are

$Snap Inc(SNAP)$ Snap said it generated $1.13 billion in sales in the most recent quarter, or 6% above the year-earlier figure. That was the slowest rate of growth since going public and below the 8% figure Snap said in August it was seeing. The sales figure narrowly missed Wall Street expectations, though its $360 million loss for the period was narrower than analysts surveyed by FactSet had expected.