How Snapchat Destroyed $120 Billion

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Better title: How insane investors thought a camera app was worth over $100 billion

It didn't destroy anything! It was just extremely overvalued.

The valuation was insane right from the start. There's no logic behind valuation anymore.

All we can say is: Evan and Bobby are not certified bros :(

Many of these cash burning, loss making "growth stocks" are bubbles waiting to get popped.

Snapchat has become absurd nowadays

The modern trend of Silicon Valley to focus on growth at all costs rather than profitability or real value is the actual issue here.

Am more impressed that it still exists.

I think Snap mades several blunders that will ultimately lead to their demise if they don't pivot. Spectacles was a bad idea but rolling them out via vending machines was just bad. Paying millions for people to uploading stolen tiktok videos is another. And now a drone with a 4hr battery life that can only take selfies, did they have no one in the R&D dept that said this was a bad idea? But I think the biggest blunder was classifying their business as a camera company instead of a software/platform company. If they continue at this trajectory, it won't be good for them. But I'm sure FB and other big boys would acquire them.

Pixy looks like a very interesting idea. I know for sure there is a market to replace tripods and selfie sticks. If it is easy enough to use that will be big money

Another app who's growth was related to the pendemic and expected it to last forever. Sooner or later its was going to be over and people would go back to "regular" life and usage would drop and with the revenue.

80% devaluation isn't fair it needs to drop 98% or more

Its funny how they optimize snapchat app for apple users yet now apple new privacy policy is affecting their advertising revenue 😆

i could never figure out how to use the app and I figured it was the start of me becoming old 😅

Tech companies in a bull market quite often ride a wave of optimism about future earnings that is unlike in many other sectors. And for a while, it will seem that rising share price valuations make up for the sketchiness of a business model and a thus-far absence of real profitability. But when those pipe dreams fail or when the market is going through a general slump in tech optimism about the future, then those tech stocks tend to come back down to Earth, where robust, tangible profits are the result of hard graft and not of lofty promises. Over the space of decades, markets seem to make those mistakes over and over again, in a strange reiteration of the same old manic depressive amnesia that got people burned the last time.

I was heavily swing trading this last year, writing puts and sometimes just buying 100 shares and writing calls. I made a good amount of money and got ridiculously lucky that I did not lose a lot, I got kind of nervous when it was in the 60-70$ price range and backed off of it, I remember after one of their earnings reports it went from like $70 down into the 50s, right about the time after I stopped trading it.

I totally forgot about Snapchat until I saw this video. Can't believe they are still around.

still, can someone explain why a company’s revenue growth even matters when most companies don’t share a penny of their profits with the so called shareholders?

All the tech stocks are getting pummeled but some of them are either evil or not ran like a company designed to make money so all fine. Seems like a good time to invest in the more well-known brands because worst comes to worst companies like Snapchat will probably get bought anyway.