Here I am going to review the prospects of Twitter and Snap Inc, the maker of the Snapchat application. After Facebook these are arguably the most popular social networking tools listed on an exchange.
Twitter's shares fell by nearly 20% on Thursday due to a miss on its third quarter earnings report. Snap Inc.'s shares also fell by around 10% intraday on the past Wednesday, although Snap Inc. beat on earnings.
Basically, I think both Twitter and Snap are undervalued at current levels. Facebook Inc. is valued at 536.04 billion USD by public markets. Yes, I know Facebook has probably reached about 2.5 billion monthly active users by now, while Twitter and Snapchat have each less than 300 million monthly active users.
But still, Twitter and Snapchat look like the only viable competitors to Facebook in the long term. If the stock market is right and Facebook is worth 536.04 billion USD than Twitter and Snapchat are undervalued.
I would say Twitter's intrinsic worth is around 30 billion USD an around 30% upside from the current value of 23.42 bln. USD of Twitter. Snap's intrinsic worth is around 30 billion USD also, an upside of more than 50% from its current valuation of 19.25 billion USD.
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Petar
Vladimirov Posledovich is not liable for any investment losses incurred
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Respectfully yours,
Petar Posledovich
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