Snap Inc (snap) Has No Friends At The Minute!

Discussion in 'Investment Charts' started by longtermbull, Jul 18, 2017.

  1. gowiththeflow

    gowiththeflow Senior Investor

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    Wow! What a last few days for the shares! I worry that even a revamp in the service, which has been well received, will just see the likes of FB investing more money in their own similar services. I would still be a seller into strength but I could be wrong!
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    When will we see profits from this one? The new format has been well received but still doesnt change the fact that monetising the service is not going to be easy. Ironically the more successful the new service the more chance competitors such as Facebook will simply mimic the company rather than buying Snap. Too expensive to be taken over but not making enough money to warrant this valuation - a strange scenario.
     
  3. Chartman

    Chartman Senior Investor

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    I still think bearing in mind current market conditions that this spike will prompt stale bears to bail out. Mabe when the dust has settled we will get a more balanced opinion on the changes but just now there is too much jam tomorrow and this is not the time to be in these types of stocks.
     
  4. gowiththeflow

    gowiththeflow Senior Investor

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    Has anybody seen the latest profits forecast for Snap? We all know that profitability is still some way off but do analysts expect any short to medium term improvement as a consequence of the recent change in the services the company provides? Personally I think we will see more sellers coming in if the share price remains steady or even moves higher. These are the ultimate jam tomorrow companies, they have massive followings but find it very difficult to monetise this traffic. Once they start introducing adverts and similar fundraising elements this is when you get the backlash from customers.
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    Staying surprisingly strong - FOR NOW :)
     
  6. Buyonthedips

    Buyonthedips Senior Investor

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    Over valued at float and still over valued in my opinion. These social media services are 10 a penny now and if FB or Google really wanted to own Snap's market they could build there own services for a fraction of the Snap market price. Realistically how many years to profitability?
     
  7. longtermbull

    longtermbull Administrator Staff Member

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    I would be looking to buy a put option fairly soon - I suspect over exuberance may occur in the short term with a big spike higher. That would be the perfect time to buy a put option :)
     
  8. Buyonthedips

    Buyonthedips Senior Investor

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    I agree, this share price seems to be set for a major correction at some point. The majority of the feedback on the new Snapchat format has been mixed to say the least. Many people have been highly critical and with other similar services now available, this does not bode well for the future.
     
  9. gowiththeflow

    gowiththeflow Senior Investor

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    Critical time for the share price with all kinds of chart support and resistance levels coming into play :)
     
  10. longtermbull

    longtermbull Administrator Staff Member

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    Bounced off resistance - next couple of days will be critical. Is the run over or are the shares consolidating for a new push through the resistance level just above $20?
     
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