SNAP is a straight-up Ponzi scheme

beerntrading · Nov 10, 2017

MrMuppet said:
SNAP is a good lesson for everybody.

I mean, at a certain point of time, there has been an institutional investor thinking "hm, its an app and it has a userbase, let's throw some millions at it"

But honestly, how stupid were the people who really thought this has potential? It's an app you can share pictures with...

I tip my hat to the underwriters and all the people who were able to pull off such a scam. If it wasn't Wall Street and big names, a lot of people would end up in jail for straight forward fraud XD

It's worth noting that FB started out as a website you share pictures with...for only college students.

MrMuppet · Nov 10, 2017

beerntrading said:
It's worth noting that FB started out as a website you share pictures with...for only college students.

In fact it did. But was it worth 29 billion back then?

misterkel · Nov 11, 2017

Don't see why it can't be monetized - youtube just sticks links onto videos. Why can't Snapchat do that?

Pekelo · Nov 11, 2017

misterkel said:
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.

MrMuppet · Nov 11, 2017

misterkel said:
Don't see why it can't be monetized - youtube just sticks links onto videos. Why can't Snapchat do that?

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

misterkel · Nov 11, 2017

MrMuppet said:
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?

MrMuppet · Nov 11, 2017

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?

dealmaker · Nov 11, 2017

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

Cuddles · Nov 13, 2017

dealmaker said:
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

Is that the Chinese injection?

Pekelo · Nov 13, 2017

MrMuppet said:
As I said, it's worth something...Look at Fitbit:

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.