Can someone explain to me how Snap can be valued this much? I feel like I was asleep for 50 years and I just woke up and I have no idea how society works. Don't they make a little sexting app? What happened!
Snap Jumps in Debut After App Maker Raises $3.4B in IPO
231–240 of 369 posts
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#232Earlier quoted context omitted.
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.
I think you are being more than a bit pedantic for very little benefit. I never said "Non Gaap accounting", I said "Non Gaap measures". That doesn't have to mean Pnl, it can, and was intended, to mean things like user engagement numbers, monthly uniques, etc. Is there a different terminology that you would prefer that I use? how about this........ I'm interested in seeing whether they focus on their earnings vs user…
Yup i think 'earnings vs user growth numbers' is a great way to put it
My thinking was that 'People worried about money losing companies with huge valuations' is a popular cause of consternation and 'People worried about non-GAAP accounting' is another popular (for some people) cause of consternation.
Gaap(Pnl) vs non-gaap made me suspect you were conflating the two worries, and made me wonder if lots of people might also be confused by what accounting/finance/investment people are generally talking about when they talk about "Non-GAAP measures"
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#233This $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…
Heck, I'm 24 and have a lot of trouble understanding the appeal of Snapchat. Despite lots of friends trying to get me to use it I've never figured out how to get value from it.
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#234Earlier quoted context omitted.
once it hits the mainstream it isn't cool anymore, take Facebook for example. kids hate it now, because grandma, mom, dad and aunt marie all use it. when it comes to social media of any type, if your grandma is using it, you don't want to be using it, since it must be for old people. according to teenager logic, anyway.
Well to be completely fair, it is quite embarrassing even for me as an adult to have my parents/grandma looking at the stuff I post of facebook, which has caused me to reduce engagement there and post to instagram, which is restricted to close friends.
That's exactly the reason why I, along with my circle of friends, moved to Snapchat.
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#235ITT: I don't have a Visa card, how can they be worth $1T?
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#236I'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…
> So now we know that there is atleast some appetite for shares with no controlling interest and no indication of paying out a dividend any time soon. A current market cap of 30 Billion is a pretty darn big accomplishment! This is really disturbing. I don't know if its an indicator of too much money in the market, or just the fact that the market itself has expanded so much. Why would investors be OK with losing powe…
Note that Google and Facebook have effectively the same level of founder control, albeit with different implementation details. Google even had to issue a new share class in 2014 so that the company could issue more shares without the founders giving up voting control. Snap's approach seems like a more robust long-term way of telling investors that they don't have a say in things.
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#237My favorite tweet about the whole situation: https://twitter.com/objective_neo/status/736530568222015489
The amount it's valued at seriously blows my mind. Like this is an app that's main features are sending 10 second videos and images.
Complexity does not correlate to value. All my friends use Snapchat and no one uses Facebook.
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#238I 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.
And that's not their only product: Bitmoji has been the #1 iPhone app overall since January 11, and it was already the #1 iPhone Utility app since July 22, 2016 (Log in to see) - https://www.appannie.com/apps/ios/app/bitmoji-keyboard-your-... https://www.appannie.com/apps/ios/top/united-states/overall/... And yesterday on eBay, 22 pairs of Spectacles were sold, with one pair went for $229 and 2 others went for $200 e…
to me this all sounds like a company with little revenue and no focus and too much money that they are just trying everything to see what sticks to get them to bigger revenue
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#239Earlier quoted context omitted.
> 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…
Heck, I'm 24 and have a lot of trouble understanding the appeal of Snapchat. Despite lots of friends trying to get me to use it I've never figured out how to get value from it.
Like most social networks, getting value from it depends on following high-quality content creators. Mark Suster is a good one on Snapchat.
Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO
#240I 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.
And that's not their only product: Bitmoji has been the #1 iPhone app overall since January 11, and it was already the #1 iPhone Utility app since July 22, 2016 (Log in to see) - https://www.appannie.com/apps/ios/app/bitmoji-keyboard-your-... https://www.appannie.com/apps/ios/top/united-states/overall/... And yesterday on eBay, 22 pairs of Spectacles were sold, with one pair went for $229 and 2 others went for $200 e…
> And yesterday on eBay, 22 pairs of Spectacles were sold, with one pair went for $229 and 2 others went for $200 each...
Snapchat isn't making any additional money from the Spectacles resellers though.