SNAP - Embedded Expectations Analysis - 2020 09 22
Snap Inc. (SNAP:USA) currently trades near historical highs relative to Uniform assets, with a 13.3x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may have concerns about long-term growth, e-commerce engagement, and community strengthSpecifically, management may be overstating the impact of their ads and optimization improvements to the acceleration of e-commerce engagement, and their focus on long-term growth investing. In addition, they may have concerns about the sustainability of Discover content growth, and the availability of political impression information online. Furthermore, they may be exaggerating the strength of their Snapchatter and advertiser communities, and the potential of COVERGIRL Clean Fresh. Finally, management may have concerns about the continued decline in revenue growth related to coronavirus and Daily Active User (DAU) growth
Snap is a camera company. The company's primary product, Snapchat, is a camera application that helps people to communicate visually through short videos and images called Snaps. The company's products are: Camera, which includes tools for people to personalize their Snaps; Chat, which includes interacting with friends on Snapchat; Discover, which includes providing Stories and Shows from publishers, creators, and the community; Snap Map, which shows a live map of the user's location; Memories, which enables users to save the Snaps they create in a personal collection called Memories; and Spectacles, which includes creating Memories by using Spectacles, which are the company's sunglasses that make Snaps.
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