Key insights
- The post discusses the challenges Snapchat faces in the competitive social media landscape, highlighting concerns about profitability due to necessary investments and a share structure that limits activist investor influence. The author suggests going private or being acquired by Apple or X as potential solutions. This has a slightly negative influence as it questions the long-term viability of a specific tech company.
With social media being a winner take all industry, Snapchat really doesn’t stand a chance in the race. It has to continue to invest heavily in order to stay relevant but doing so will hinder its profitability. Do u guys see a way out for the company that I’m not seeing?
Also, with the current share structure even activist investors can’t do a thing unless they can legally change the voting structure since current CEO seems to have no plan to change.
My view:
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Go private
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Get sold to Apple or X
What do you guys think? I’m a newbie at this so any lessons/experiences in general are welcome as well. Thx 😊