Snap shares trade far below the listing price

The stellar US tech stock so far this year is not a cloud computing giant or ecommerce conglomerate but browbeaten photo messaging company Snap. Shares are up 79 per cent… Even after the share price rise this year Snap shares trade far below the $17 listing price. Full recovery depends on the company either proving it can add new users or has a tight enough grip on spending to slow cash burn of $1.3 billion last year. Neither is certain… Snap’s 186 million average daily user count remains teeny against social media giant Facebook’s 1.5 billion global total — just as $1 billion in revenue last year is a fraction of Facebook’s $55 billion. At least it has steadied. After a bad 2017 and a horrible 2018 that is good news. So is the fact that Snap is still fizzing with ideas. Its glossy, short narrative video series The Dead Girls Detective Agencyhas proved popular… Even after an unpopular app redesign, Snapchat is more popular with American teens and tweens than Facebook apps… Overhauling the advertising from direct sales to an automated platform venue helped to raise revenue 37 per cent in the past quarter even as user numbers stalled. But it does not cancel out the need for growth. Snap has bought itself some time but like its own messages, that time is finite.
 
Lex.

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