“Social media is about friending someone so they’ll invite you to a party or get you a job. If that’s the work, Snapchat is the playground.”
— Evan Spiegel
Looks like 1 lonely, steep slide on that playground.
SNAP reports in a week’s time. The stock looks ready to fall apart.
Anything can happen of course, but does this look like a security that’s ready to run away to the upside?
Company Description (via Yahoo Finance)
Snap Inc. operates as a camera company. It offers Snapchat, a camera application that helps people to communicate through short videos and images. The company also provides a suite of content tools for partners to build, edit, and publish snaps and attachments based on editorial content; and Spectacles, which are sunglasses that capture video from a human perspective. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Venice, California.
This is the only real problem with my “SNAP is headed lower” thesis. 5.6 days to cover is not ideal from the short perspective, but I’ve seen worse…
If you think this stock is just waiting to become Facebook circa 5 years ago, you might want to rethink that.
Or at least I certainly would.
Hope it helps,