Snapchat Crashes BAD
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The Snapchat disaster and drama continues on they just reported earnings here about an hour ago, guys. It’s no bueno. guys, it is not looking good for Snapchat, these chairs are down massively after hours we’re gonna look at
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That I’m going to talk about I’ve mentioned several times on this channel that if Snapchat drops below $11.
I would be interested in buying shares in this company, I’m going to kind of address that if I will be doing that if the shares do drop under 11, things like that, guys, we got a lot to talk about with this one. So first off here, Snapchat shares as I’ve taken the screenshot, we’re down over 16% here down to $12.70.
Its lowest it’s been so far this year as $11.28. Okay, that’s the lowest it’s ever been. And at one point here in after hours, it was down more than 20% it was under $12 a share at one point in the after hours, guys. So we got to look at all these numbers.
I gotta give you my take here, make sure if you’re newer to the stock market, you click that second link there in the description that goes into my stock market investing mastery course, if you’re an experienced investor, click that first link that is to join my private exclusive membership group.
Let’s get into this guy. So snap reported revenues of $207.9 million missing analysts expectations of 230 6.9. That’s a pretty bad Miss there, especially considering how often analysts have taken down numbers for Snapchat. It’s not just that Snapchat misses the fact that analysts have taken numbers down and Dumars downs for this company in taking their expectations down lower and lower.
And they still missed pretty bad here. That’s kind of bad news there. The app now has 178 million daily active users only a slight bump from 173 million that line there and kind of like almost cracks me up. Like they say only a slight bump 5 million, we’re talking 5 million more daily active users in literally three month span than the previous quarter. Right?
Like, like, I don’t know what what companies are great enough of them, maybe Facebook, other than Facebook, I can’t think of another platform out there that can just add 5 million new users in one quarter like that daily active users. That’s a huge number, guys, but it wasn’t it wasn’t what analysts expected.
Once again, they’re so they’re making some big moves here with Snapchat. So this is a quote from the CEO. One thing that we’ve heard over the years is that Snapchat is difficult to understand or hard to use, our team has been working on responding to this feedback.
As a result, we are currently redesigning our application to make it easier to use snap CEO Evan Spiegel said in the statement on Tuesday, this is surprising to me, the fact that anybody would say snapchats hard to understand or complicated.
But I think mostly snapshots one of the easiest platforms you could possibly use out there, I can’t think of anything easier. Like I picked up Snapchat and probably literally probably a 10 to 15 minute span, like I download the app. And it was very easy to pop straight open and open to the camera app, it’s by far the easiest app I use out of anything.
So I’m amazed that they’re completely doing a redesign here. Let’s read a little bit more here. There’s, there’s more quote from Spiegel, there’s a strong likelihood that the redesign of our application will be disruptive to our business in the short term. And we don’t yet know how the behavior of our community will change, when they begin to use our updated application.
That was kind of a scary line there. I’m gonna read that one more time. And we don’t yet know how the behavior of our community will change when they begin to use our updated application. That’s a scary line there, guys, we’re willing to take that risk for what we believe are substantial, long term benefits to our business.
Okay. So, you know, this is just a scary thing for me. And because of this, I’m not sure even if shares were to drop under $11. I’m not 100% sure, I want to jump in the stock because they’re talking about a big redesign here of the app. And you’re growing company, right? This is a company that just added 5 million new people, 5 million new daily active users in the past quarter, like you’re doing good. Maybe you’re not doing as good as.
Wall Street wants you to do, right. But you’re still doing way better than basically anybody else out in the space is doing other than maybe Instagram, like there’s no one above you. So the fact that they’re completely redesigning the app.
That’s a little scary to me, because of how many people already love this app, and you’re adding more and more users Why go ahead and change it, I can almost guarantee you the reason they’re changing it more than likely is probably so it’s more advertiser friendly.
And they can throw more ads in there and do a lot more things as far as that goes. That’s kind of scary if that’s kind of the premise behind it. Because you know, what if you start turning off users, and those those user metrics go from 5 million or growth to 5 million disappear because of this guy, so that’s kind of scary if.
They’re the young company admin for two misjudging the success of its first hardware product spectacles, a lack of demand for the camera equipped glasses resulted in a $40 million charge due to excess inventory and purchase commitment cancellations.
We know the whole photography you know videography said It is you know a hard it’s a hard business right now. I mean even the creme de la creme which is what GoPro there’s, there’s no one above GoPro as far as the amount of cameras they sell right company I own, even though they’re having a hard troubles as far as growing the camera side of the business GoPros growing growing other parts of the business, but the camera side has really hard to grow right now.
And that’s pretty much you know, even in the DSLR space, the canons the Nikon’s some of those that maybe don’t sell as many units up there, but they still sell cameras even those ones are you know, experienced some some troubles right now. So the camera space is hard and the fact that Snapchat try to jump in their respective goals.
You know, it’s admirable that they tried but at the same time, what were the chances that they weren’t going to succeed? When you see a lot of camera companies having troubles right now as it is, so it’s a hard space to do their Snapchat try to jump in hardware. I you know, hardware is a hard business.
That’s the bottom line hardware is, it seems really simple. And then once you get in the business, you realize how hard it is to make it because there’s only a few companies that can really, you know, produce the type of unit numbers, you need to not take excess write downs and whatnot here.
So with Snapchat guys, I’m just like, I don’t know if even if this drops under 11 I don’t know if I want to jump in and for the strict fact that I don’t know what’s gonna happen with this redesign of the app. And that scares me when you’re talking about like a fundamental redesign that really scares me as someone that would potentially be buying the stock because it’s like, what am.
I getting into here are we also going to lose 10 million people because they don’t like it as much or 20 million or 50. Like that’s scary to me guys, especially if it’s a huge change. So for that reason, I’m not even convinced that if it drops under 11.
I would be buying this until I get to see what the app looks like get to hear feedback and those kinds of things guys, so anyways, hope you enjoy this day. Don’t forget if you are new to the stock market, click the second link in the description. If you’re an experienced investor, click that first one join there guys. Thank you for watching and have a great day. Look