Keep in mind the founder owns about 13% of the company so even if it fails he is cashing in on more than 2Billion right now, of course depends on how much of shares he maintains could change that
...I literally started to salivate after reading this But all tech companies are Overvalued, in my very basic humble (maybe naive) opinion. Traces of the the crazy go-go 90's blood...still remains in today's tech companies.
160 million users who spend 20 to 30 minutes a day on avg. That's a whole lot of time to brainwash people with all sorts of ads and other stuff. 25bil is a steal.... According to the economics of 2000+. I don't even understand what snap does nor have I ever used its app and probably won't either (I describe myself as being very knowledgeable on the programming and trading side, early 40s but without a Facebook or Twitter account either). I think those valuations are crap and not based on anything product or company related. What I believe I understand is the value of the user base and the power of ad dollars. Look at Facebook. They are nothing without advertisers. Who would pay for WhatsApp if they monetized it? (other than me). And they are spending huge amounts of money to invest in other future proof areas right now.
... The same what Facebook did with all the money. Maybe they hire a bunch of AI specialists and voila, you have a new "disrupter" on a grand scale. Facebook is imho a shit concept and people will wake up one day and realize how much time of their lives they wasted on FB. Younger than millenials are already less than excited about FB. Yet FB bought WhatsApp (in Hongkong where I live, life for most would be impossible without WhatsApp,it has one of the world's highest penetration here). FB is very engaged on the AI side as well. In summary, a shaky base product (imho), and management knows it's temporary, and they are rushing to invest all that money in other areas. Same could happen with Snap. Who knows. Key will be management vision. Whether they have another Bezos or not
That itself may not be worth much. And I side with you in that I do not see much value in snap's base products. But neither had I in Facebook when they went public. It all comes down to how they employ those funds going forward. I am pretty sure they won't develop more lenses with the billions they can spend.
And all the free fed money...none of this would have been possible without those fed trillions..... Wonder how long the foosball tournament will last for???