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Snap Jumps in Debut After App Maker Raises $3.4B in IPO

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Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#51

Post by joshuamorton »

ryanmerket wrote: post #14
usaphp wrote: post #2

Reminds me of Facebook IPO, a lot of people were claiming it will plunge and eventually go bankrupt. But companies with such big daily active audience that can be targeted with ads are here to stay.

>> But companies with such big daily active audience that can be targeted with ads are here to stay. That's just it. Snapchat has very little targeting data, and targeting is a force multiplier for ads revenue. They don't even have explicit gender data. Edit: Downvote all you want. They don't ask the users for gender. It's implied. See Twitter for a similar tactic.

They have extremely powerful targeting data: geolocation. Afaik, one of snap's biggest revenue sources is geolocked filters.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#52

Post by gregshap »

chollida1 wrote: post #13

I'm happy for the NYSE that this went well. SNAP has done some pretty large volume so far with no problems. Interestingly enough, well atleast to someone who cares about the cash equity markets, the NYSE actually did a test run last week to try and simulate the chaos that occurs during any hot IPO. So now we know that there is atleast some appetite for shares with no controlling interest and no indication of paying o…

GAAP vs non GAAP accounting refers to how you calculate PnL, not whether you use things unrelated to accounting to hint that you are growing and might make money in the future. You can definitely use strict GAAP accounting and also brag that users are super duper engaged.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#53

Post by capkutay »

zach417 wrote: post #38

I don't understand how the existence of Snap adds over $30B of utility to the economy.

> I don't understand how the existence of [any company ever] adds over [their current valuation] of utility to the economy; furthermore, if [company] fell of the face of the earth, everyone would just switch to [their competitor], and life would resume ut fit. Peter Thiel's quote should be updated: We wanted flying cars, instead we got 1̶4̶0̶ ̶c̶h̶a̶r̶a̶c̶t̶e̶r̶s [trivialization of product's value].

These comments surface every time a company goes public. You may have some valuable information driving this viewpoint underneath, but from this comment it just sounds like useless trolling.

To me at least, Snap seems like a good company with cultish user-base. They have done a good job integrating ads and rich content (some paid content) into their core UX. A difficult feat which Twitter still hasn't solved to this day. They also have an interesting perspective on live events that even FB/Instagram has failed to replicate.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#54

Post by idiot_stick »

michaelbuckbee wrote: post #24
doc_holliday wrote: post #3

I know that the Snapchat platform is worth something, it has high engagement and adoption of 18-24 year old age segment, and that is worth a lot in terms of attention and advertising $s. However, this just feels completely out of proportion to earnings and downside does not seem priced in. Willing to be proved wrong of course, but especially seeing as they are non voting shares, I cannot understand this pricing.

The hard part with these things is that in some ways progress and growth is non-linear. So Snap has (by all accounts) done a masterful job of launching their first hardware product: https://www.spectacles.com/ How do you value that? I'm of the opinion that AR style glasses are the technology that will be the next tech wave post mobile phones (FB buying Oculus and Google pushing so much money on MagicLeap is explained…

>How do you value that?

It's a pair of glasses that stream video from a camera. I'm not saying it's not cool, but what is so crazy about it that it's hard to value?

>What's that worth?

If you're buying IPO shares and can't answer that question yourself, you're probably doing something wrong.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#55

Post by moolcool »

michaelbuckbee wrote: post #24
doc_holliday wrote: post #3

I know that the Snapchat platform is worth something, it has high engagement and adoption of 18-24 year old age segment, and that is worth a lot in terms of attention and advertising $s. However, this just feels completely out of proportion to earnings and downside does not seem priced in. Willing to be proved wrong of course, but especially seeing as they are non voting shares, I cannot understand this pricing.

The hard part with these things is that in some ways progress and growth is non-linear. So Snap has (by all accounts) done a masterful job of launching their first hardware product: https://www.spectacles.com/ How do you value that? I'm of the opinion that AR style glasses are the technology that will be the next tech wave post mobile phones (FB buying Oculus and Google pushing so much money on MagicLeap is explained…

These cheap plastic glasses have the cultural staying power of the pet rock.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#56

Post by edoceo »

paglia_s wrote: post #42

As an user in their target age (18-24) I have to say that since Instagram started introducing features like stories and stickers the activity in my Snapchat has diminished enormously. I would say 50-70% less activity. I don't know if it's something specific to my social circle or more widespread but anyway it's been impressive

Your case matches with the three people ("melinials") I know who have used Snapchat.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#57

Post by jonknee »

michaelbuckbee wrote: post #24
doc_holliday wrote: post #3

I know that the Snapchat platform is worth something, it has high engagement and adoption of 18-24 year old age segment, and that is worth a lot in terms of attention and advertising $s. However, this just feels completely out of proportion to earnings and downside does not seem priced in. Willing to be proved wrong of course, but especially seeing as they are non voting shares, I cannot understand this pricing.

The hard part with these things is that in some ways progress and growth is non-linear. So Snap has (by all accounts) done a masterful job of launching their first hardware product: https://www.spectacles.com/ How do you value that? I'm of the opinion that AR style glasses are the technology that will be the next tech wave post mobile phones (FB buying Oculus and Google pushing so much money on MagicLeap is explained…

No disrespect to Spectacles, but camera glasses have been around for years. It's not AR and it's not yet even material to Snap's business (according to Snap!).

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#59

Post by untog »

linuxkerneldev wrote: post #34

This $27.8 billion dollar valuation tells me that somewhere along the line, my job and lifestyle have caused me to detach from a significant chunk of society. I've never used Snap or their platform. I don't even really know what the benefit of their service. I am curious if I'm in the minority or if there's lots of developers like me who aren't able to comprehend these valuations.

> my job and lifestyle have caused me to detach from a significant chunk of society

For the vast majority of Silicon Valley, this happened a long time ago. Tech valuations have been divorced from the lives people lead for quite a long time - Snap is just the first instance of this happening to people who are in the Valley, solely because of their age.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#60

Post by Grue3 »

InternetUser wrote: post #49
linuxkerneldev wrote: post #34

This $27.8 billion dollar valuation tells me that somewhere along the line, my job and lifestyle have caused me to detach from a significant chunk of society. I've never used Snap or their platform. I don't even really know what the benefit of their service. I am curious if I'm in the minority or if there's lots of developers like me who aren't able to comprehend these valuations.

> my job and lifestyle have caused me to detach from a significant chunk of society Yeah, the 13-21-year-old chunk of society. Do you, as a Linux Kernel Developer, happen to be within that demographic? Even their IPO roadshow video (which I see has now been removed) talks about their "13-34-year-old" user base, and then emphasizes the far higher levels of engagement and far higher potential among the lower half of th…

>Yeah, the 13-21-year-old chunk of society

MySpace had that one nailed, and look how that turned out for them. This is exactly the kind of demographic that is susceptible to fads and keeps leaving dead services in its wake.

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