Key insights
- The post expresses concern about Snap's stock performance despite positive news, questioning the market's negative reaction. It highlights potential growth drivers like Snapchat+ and AR glasses, while acknowledging the bear case related to employee equity compensation. The possibility of a Meta acquisition is also raised. However, the overall impact on the broad US market is limited.
I have $35k invested in Snap shares at around 7$. What I don't get is- why did the price drop to beyond $4.5 after finally some good news? What's the catch here? The company is finally making some money, yes the users in North America are slightly lesser but with Snapchat+ and the AR glasses, wouldn't the revenue make up for it and even more? I understand the bear case, that the employees are paid in equity that they sell to get real money, but is the bull case so bad? Do you think the possibility of Meta buying the company to get a monopoly over the smart glasses industry is priced in?