Possibly because I am not a millennial I just didn’t understand Snapchat. Not their application and use, but their valuation. It is cute technology used by children. As far as I know there is little to no moat, and some very major competitors vying for short attention spans. It looked to me like a way for all the investors to cash out, dumping the thing on retail investors. To me, the IPO it was some sign of a peak. Maybe peak VC, peak Silicon Valley. I’m not saying its all dead, but the easy money is.
After the IPO SNAP traded to just under $30 – a $35 BILLION valuation. For this:
It now appears easier to say in hindsight after their horrid earnings last night, but there is still a long way for SNAP to go zero.