I think a lot of people are now being found out - investing in social media companies was always going to be down to timing. Getting out before the sector caved in. I always thought these companies were jam tomorrow - but for some tomorrow might not come
I was going to say what a pity for those people who are locked in but they would have sold part of their holdings at a significantly higher (arguably inflated) price. I just can’t see anything positive on the horizon for this stock until we start to see the advertising revenues flow.
CEO suggesting Snap is not a social media company:- https://www.entrepreneur.com/article/321235 Why was it sold to investors in that manner? Or was that only when the social media sector was flying high on hairbrained valuations?
This has been in a serious downtrend since August and it does not look as though this will change any time soon. Does anyone know the company's cash position? Will Snap need to tap the market for funds in the short to medium term? If so there would be massive dilution at current levels. Can't see any reason to buy this one except for an opportunistic bid for the company. Looks like it is dying a slow death.
The shares need to break through the SMA 20 before I would take a serious look at them - not a friend in the world and difficult to justify a buy just now. Only reason to buy after looking at the graph would be speculation of a bid but why would anyone pay over the odds?
I am not sure that I see any value in this company to be honest. While my step-kids used to talk about SnapChat a lot in the past I hardly hear it mentioned these days. Many people prefer to use the FB Live function or take videos on their phone and share it with their friends.
Interesting bounce over the last few days. However, the down trend will not be broken until the shares have risen above the next trend line - around $8.50. Any investment before this level should be classed as speculative!
Review: Oh how the mighty have fallen ($5.92) This company is quickly become an irrelevance in the world of social media and unless we see an opportunistic bid for the company, I fear for the group's long term future. Avoid!
There is something not right about this company if you look at what the share price is telling you. It may look like a tasty morsel for someone to takeover but it would take deep pockets to make Snapchat a major brand in the social media market (again?).
One analyst issues a very downbeat statement for the company even with the shares under $6:- https://www.cnbc.com/2018/11/30/cra...-isnt-a-bargain-at-6-no-reason-to-own-it.html
