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Snap: Not Worth The Premium

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Snap reported mixed Q2 results.

The company guided towards highly disappointing Q3 DAUs at only 243 million.

The stock is the most expensive in the social media sector and should be avoided without leading financial results.

Snap (NYSE:SNAP) is amongst the cohort of technology stocks priced for perfection when the company is imperfect. While plenty of stocks trade as if the economy doesn't recover to previous levels, Snap trades at levels suggesting a return to strong growth in 2021, despite the company still forecasting a tough ad market in Q3. With the company still losing substantial amounts on a quarterly basis, my investment thesis remains negative on the stock up in the $20s with a market cap topping $40 billion prior to the earnings report.

Read the full article on Seeking Alpha. 


Disclosure: Long TWTR. Please review the disclaimer page for more details. 

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