2024-03-26 03:21:16 ET
Summary
- Snap has experienced a slowdown in user growth as well as advertiser interest, leading to a 30% decrease in share value.
- The company faces risks of competition from newer platforms and struggles to compete with Facebook and Instagram's appeal.
- Snap's investments in machine learning have resulted in high server costs, impacting gross margins and profitability.
- I'd recommend waiting for Snap to fall below $10 before buying in.
Amid a broad rally in tech stocks this year, one major social media company has been a notable holdout: Snap Inc. ( SNAP ), the maker of the eponymous disappearing-messaging app. The Evan Spiegel-founded company has reported a slew of problems over the past several quarters, including slowing user growth, declining advertiser interest, and sharply rising infrastructure costs....
Read the full article on Seeking Alpha
For further details see:
Snap: User Growth Is Slowing While Costs Are Skyrocketing