Snapchat is a beginner in the stock market and has more than initial teething problems to fight. After publication of the first quarterly figures investors see red and decide against the yellow social media platform.
who laughs last
A crucial moment for every investor: the publication of the quarterly figures. This was no less crucial for Snap, as the company behind Snapchat calls itself. Shortly after going public earlier this year, the stock plummeted. CEO Evan Spiegel's company had no choice but to report a loss of over 2 billion euros.
This was a bitter disappointment for many investors and the bubble around another social media company on the stock exchange burst. 24%, the share shot down until it – literally – hit the bottom. Because with a low point of approx. €16, the share almost reached prices at the issue price.
Despite the slump, Spiegel is relaxed and even looks at his company's latest development with a smile.
Certainly the 750 million euro compensation payment from the IPO to the founder himself also has something to do with it.
But the 26-year-old billionaire cannot be shaken by Facebook's brazen functional theft and the resulting shrinking number of new users. Zuckerberg had first integrated the story function into Instagram in the most obvious way, and shortly afterwards even into Whatsapp and Facebook. While you have to search very carefully and extensively for the story users in Whatsapp, the almost exact copy of the Snapchat element was extremely well received by the Instagram community.
Snapchat strikes back
In the – admittedly bizarre – statement by Evan Spiegel, he refers to the creativity of Snapchat in the face of the competition. In anticipation of the approaching catastrophe in the form of the quarterly figures, the cannons at Spiegel's house have probably already been loaded as a precaution. The ammunition? A new update. But the balls do not seem to have been created from the advertised spirit of innovation. Rather, the new functions give the impression that you want to beat Facebook with your own means. According to the motto "You son of a bitch, I'll fuck you now." The function with the name "Loop" was probably created. Explaining exactly what this makes is probably redundant as a Boomerang, who does not find his way back to one...
Nevertheless, Snapchat is still at the very beginning of its stock market career. An overvaluation as in the case of Facebook is a long way off, almost unthinkable. But in the hysteria of the investors, it should not be forgotten that the utopian high losses can be traced back to a large extent to the IPO itself and the payments made from it. The current low of the price could even be a cheap entry point in view of a possible price recovery. But to do that, Snapchat has to shake off Zuckerberg first and foremost. So it remains exciting in the battle of the social media giants.
