I personally think Snap Inc., the mother company of the eponymous social network Snapchat is worth more than 50% than its current stock price of 5.92 USD and market capitalization of around 7.67 bln. USD.
Why? Because Snapchat has a loyal user base of young people who are yet to be fully monetized by Snap Inc. What is more Snapchat has proven its ability to innovate which is easily proven by the fact that Facebook Inc. is betting its future on clones of the Snapchat version of stories. In addition, I think there is place for one more general social network, aside from the dominant player Facebook and the more niche players like Twitter and LinkedIn.
And Snapchat is a perfect candidate to fill that void. Facebook boasts a market capitalization of more than 400 bln. USD even after its steep fall from above 550 bln. USD of market capitalization. And if Snapchat turns out to be a real social network competitor to Facebook, Snapchat could actually rise more than 5 times in the next 3 to 5 years.
Yes. Snapchat is loss making and will most likely loose more than 1 bln. USD in 2018. But Snap Inc. was trading at 27 USD before falling back to the current 5.92 USD, so there has been a valuation reset. I do think there is a much higher brand equity and innovation and revenue and earnings potential than the current Snap stock price and market capitalization suggests.
In short, I think in the next 1-2 years Snap Inc.'s stock could rise more than 50% and in the next 3 to 5 years Snap's stock price could more than triple.
Disclaimer:
The blogposts and comments on this blog and posts on social
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are provided solely for informational purposes, and do not constitute an
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expressed in the blogpost and posts on social networks(Twitter, LinkedIn etc.) are the author's and they in no way express the opinion or official position of the company where I am working currently!
Conflicts of interest: I may possess some of the securities,currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Conflicts of interest: I may possess some of the securities,currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Kind regards,
Petar Posledovich
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