“These comments come from the point of view of a fund manager with a significant position in Facebook, and who therefore look to Snapchat as a competitor. It is important that readers take this into account in the comments, or comparisons with Facebook and its subsidiaries, knowing that these comments may be influenced by participation in Facebook.
“I see more Snap as a technological tool interesting, like Twitter, as a giant potential of the Internet as Google or Facebook”
Snap is trying to raise $ 3 billion in its ipo. The investors in this IPO have no right to vote, given that these are retained by the co-founders. Many technology companies have structures right to vote double, what I like often because it ensures that a visionary founder can retain the emphasis placed by the company in the long term without the fear that an investor activist in the short term does not disturb the long-term strategy. There to not to give the speech to the investors in the company, it is not too much according to me.
beyond that, I don’t see Snapchat as a technological tool interesting, like Twitter, as a giant potential of the Internet as Google or Facebook. Snapchat is a company with a single product, such as Twitter, which limits its usefulness for advertisers. In my opinion, they will forever be the question of how to monetize their product, just like Twitter.
“Because its resources are less important, Snap to focus its expansion in the developed markets”
In addition, the technology world is a world in which the winner takes all the bet and Snapchat is a number 2, far behind the number 1. It has 158 million daily active users compared to 400 million for the Instagram of Facebook. The only section Stories of Instagram has 150 million daily active users. Even if Snap has been one that has innovated, formats with 10 seconds self-destruct or the Stories of 24 hours, every time Facebook has managed not only to do as well with Instagram, but even better. Facebook with considerably greater resources for R&D, and a user base far superior to amortize these costs, there is little chance that Snapchat bat a day on Instagram. With the ability of Instagram to attract investment via Facebook, Instagram will always be not only the first choice of advertisers, but also the platform’s most valuable
For example, the average revenue per user of Snap is 1.05 us dollar, compared with 4.83 in Facebook. In the north american region, it increases to $ 2.15 to Snap against 19,81 for Facebook. Because his resources are less important, Snapchat focuses its expansion in the developed markets. Therefore, the daily active users only increased by 3% in the fourth quarter. And outside of North America and Europe, Snapchat has not believed in at all. On the contrary, Facebook is increasing its number of users to 5% outside North America and Europe, and from a base much wider.
“Snapchat is engaged for more than two billion dollars to use the cloud-based Google when the IPO does raise three billion”
another concern about Snap is that it does not have its own infrastructure, he buys it and Google is committed to more than two billion of spending to use the cloud to Google over the next 5 years. And while the IPO should raise three billion in cash ! Last year, the cost of revenues of Snap amounted to $ 450 million on revenues of 405 million. They spend so 1,11 dollar to get 1 dollar of income. And these figures do not take into account all other operational expenses (salaries, leases, supplies, etc.). It is very unusual. I think it must go back to the end of the Internet bubble to find companies entering the stock exchange, with costs of revenues in excess of their income.
In summary, to participate in the IPO of Snapchat does not interest me.”
No comments:
Post a Comment