I agree with the board consensus that Snap seems over priced (assuming the 25 Billion valuation is correct) they are pricing in extreme growth and, to use a sailing term, Facebook (via Instagram and FB main) will simply apply cover to Snap by copying their every unique move.
Facebook also has the edge in owning its own servers, which gives it a cost of revenue of 14 cents per dollar of revenue and 2 dollars per monthly active user vs. Snap at 1.11 per revenue dollar and 3 dollars per monthly active user.
With that said, my friend is in digital marketing and says ppl in his industry are pretty bullish on SNAP (and by this I mean, the opportunity for a new form of advert, not that these ppl are actually looking at SNAP's prospectus), it will be interesting to how well SNAP/ Stories monetizes
Source:
https://www.bloomberg.com/view/artic...match-ipo-hype
I semi-grunched the thread and now see that Jvds pretty much laid out the cost argument earlier...
Last edited by kimoser22; 02-06-2017 at 04:53 PM.