4.8200 16.7500
52 weeks
52 weeks

Mkt Cap 10.51B

Shares Out 979.79M

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Snap: Death Spiral

Industry surveys continue to show Instagram successfully take market share and killing all momentum in Snapchat.

The company is burning far too much cash to play any turnaround story.

The quarterly results for Snap (SNAP) were so bad that my recently issued price target of $5 now appears aggressive. The original story of out-of-control spending has been replaced by active user declines. The social-messaging platform won't have a rewarding future based on projected user declines.

Read the full article on Seeking Alpha.

Update 11/15
Don't place a lot of thought into the DOJ and SEC subpoenas regarding the IPO. The company disclosed the large cash flow losses that are leading to the problems with stock now. Shareholders in the lawsuits against the company apparently can't read a prospectus. Regardless, the stock should still head below $5.

Disclosure: No position mentioned. Please review the disclaimer page for more details.


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