It's worth noting that FB started out as a website you share pictures with...for only college students.
Don't see why it can't be monetized - youtube just sticks links onto videos. Why can't Snapchat do that?
This is a good point and apparently a few billions is not enough to hire some smart guys with economic sense.
The issue is not monetisation, the issue is valuation. SNAP is just not worth the billions of dollars people paid for it during the IPO. That's why it's going down....happens with other stocks, too. But SNAP wasn't overpriced, SNAP was so ridiculously overpriced that the IPO was a daylight robbery
I mean - that depends, doesn't it? If SNAP holds the capital tucked away without wasting it frivolously, then it's valuation includes cash assets - therefore, it would technically be worth the money, right?
As I said, it's worth something...Look at Fitbit: IPO at 50$ now it's trading at 5$ Probably closer to it's fair valuation than at the IPO. For SNAP it's the same. IPO at 27, now trading at 10. Fair price probably around 2-3 bucks?
Snap deal. Tencent has taken a 12 per cent in Snap Inc, the parent company of messaging app Snapchat said a day after posting a 16% slide in its quarterly results on Wednesday. Tencent's 145.8 million class A common shares of Snap are estimated to worth about $1.7 billion but gives it no voting rights. Reuters
On Shark Tank, Mr. Wonderful usually says, this is not a company just a product. Same like Snapchat. It is like a one hit wonder musician. Fitbit might be able to copyright the product but anyone can write a photo application.