Snap’s IPO Roadshow Message: We’re the Next Facebook, Not the Next Twitter http://www.wsj.com/articles/snaps-i...next-facebook-not-the-next-twitter-1483007406
The name Evan Spiegel should tell you all you need to know whether you are dealing with another product the world really does not need or an innovation that simplifies our lives. Remind me again, how many chat application does one really need?
I do think that it will rise in price initially - but I even doubt that they will outperform twitter in the long run. As far as I see, Snapchat is only for fun...pls shed light on me if you have a good reason to buy it?
Look how the other income-hemorrhaging tech sites performed in the last 5 years. FB, LNKD, AMZN, whatsapp. Twitter and Tumblr did poorly. Still, we're in a bull market. Rising tide, and all that. Snapchat has a huge userbase. Either they get bought or they find a way to monetize it.... Tumblr got bought. The money is in the userbase. That's what makes it a good play. Same with Uber. 1 chance out of 6 they can't make it work and the stock falls. I'd say those are good odds. Wait until after IPO > big pullback > long.
Achilles, wtf man? FB hasn't been public for even 5 years, and look at their performance! In 4 years the stock is up 4-5X? Are you just bitter that you did not see the writing on the wall? Did you not buy your 1,000 shares of FaceBook when it was 30 per share, and are now lamenting it's current per-share price? $116 or so? Thanks for your advice. You're really helping everyone here!
A large userbase does not automatically means that they know how to monetize on it. Take two companies with a large user base: FB and TWTR. FB realized the strength of mobile advertising and was able to capitalize on it as oppose to Twitter that can live stream revolutions yet can not capitalize on its user base. There is absolutely no reason to buy an IPO if no one does not know whether they can make a use of their database of users. Not all users respond to advertising in the same manner, and that seem to be the revenue factor for many of these app/gadgets companies. In my opinion is that there are ample opportunities to look and evaluate at the tech companies once they are out of the IPO gate. I don't remember which user said that on ET but he caught the essence of these IPOs well. He/She stated that you need to know if you are buying a company or a product, which is very smart because not all IPOs will evolve with the times, and bigger and better products can come into the market.
Agreed. We're still in a new bull market however. Snapchat is a tech spec stock that could have big legs. Essence of trading is taking educated risk on trades that have a good upside potential. I'm still bullish on snapchat. Just control risk and that's it