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Snap: A Sinking Ship

Jan. 05, 2022 8:14 AM ETSnap Inc. (SNAP)22 Comments
Gary Alexander profile picture
Gary Alexander


  • Shares of Snap have lost nearly 50% of their value relative to all-time peaks above $80.
  • Investors have lost confidence in the company's ability to grow users, especially as developed market/U.S. growth stalls.
  • Snap's user growth is coming from its rest of world segment, which generates 1/10th of the U.S. ARPU.
  • Now 10 years old, Snap is well aged as a social media platform that doesn't have the staying power of Facebook.
  • Shares still look expensive at ~12x forward revenue.
  • I do much more than just articles at Daily Tech Download: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Sydney"s Iconic Bondi Icebergs Transformed To Launch Campaign To Protect Great Barrier Reef

Mark Metcalfe/Getty Images Entertainment

The history of the internet is filled with the bones of once-popular sites and apps that have been left behind in the dust in favor of newer, shinier, trendier fads. Snap (NYSE:SNAP), I fear, is

Snap price chart
Data by YCharts

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This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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