Beware of Snapchat

in #snap7 years ago

Snapchat had a compelling IPO story. My friend is a trader and he bought a 1000 shares for $21. He talked them up and got me to follow the offering. As SNAP started to fall I bought 50 shares at $19 for my IRA.
Snapchatdead.jpg
It continued to under-perform for a few weeks and then I felt lucky to unload it at $17 (for a small loss).
Bottom line, forget the buzz, the company's fundamentals suck. Their price-to-earnings ratio is -4.42 and it's not likely to improve as Facebook's Instagram has eaten up most of his market share. The kids prefer Instagram to Snapchat. For this reason, if I were you, I'd unload this dog.
Just my opinion as an amateur investor.
https://finance.yahoo.com/quote/SNAP/

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Can't we just blame the patriarchy, for everything?

Batter sell it . don't trap ur money

long gone from my portfolio, following you now

yup! Besides, Snapchat does not offer much to advertisers in terms of tracking and user data - the actual key characteristic of facebook. Without that Snapchat is just a giant billboard.

Yap . do research before invest 🔥

i researched FB when it came out and didn't want it because if made no money. I was wrong though.

at that time I also thought fb was overvalued - no way this can be worth more than BMW, which creates actual vehicles!
I also did not give bitcoin much of a chance earlier on - the government would not let such a thing to pass and it is just a ponzi scheme (what I thought back then).
In hindsight you are often wrong, so let's not beat ourselves up and look forward. :)

boy and was i wrong about bitcoin! whoa

I am not sure yet. A new update could change the game?

i just wish they were making money, just followed you

making money is not what they are after - this is Silicon Valley. You have massive amounts of money at your disposal due to the central bank policy and all investors want is just "growth for growth's sake". Hence why profitability is barely on the agenda.

i don't trust snap at all personally though from what i've seen

But i am scared too, though :D