SNAP - Embedded Expectations Analysis - 2021 01 04
Snap Inc. (SNAP:USA) currently trades at a historical high relative to Uniform assets, with a 27.7x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may have concerns about their daily active users, total revenue, and advertisers' demandSpecifically, may lack confidence in their ability to sustain growth in daily active users, maintain total revenue, and mitigate volatile operating conditions. In addition, they may have concerns about the sustainability of demand from brand advertisers, the stability of growth in terms of time spent with Shows, and the potential of First Commercial. Furthermore, they may lack confidence in their ability to effectively improve monetization and increase yields with premium sports content for their Commercials ad unit. Additionally, they may be overstating the potential of their core product infrastructure and their internal team and operations. Finally, they may be exaggerating the opportunities from their C-level conversations and the capabilities of their global business-to-business marketing campaign
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.