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Exclusive: Snap reveals U.S. subpoenas on IPO disclosures

Exclusive: Snap reveals U.S. subpoenas on IPO disclosures

Read more on Reuters

Contributions

  • Analysts like myself and several others, published investment research reports pre-IPO calling out the bevy of challenges Snap faced and why the stock would be a risky investment. Chief amongst those was rising competition from Instagram. Instagram was replicating Snap's business model with ease and

    Analysts like myself and several others, published investment research reports pre-IPO calling out the bevy of challenges Snap faced and why the stock would be a risky investment. Chief amongst those was rising competition from Instagram. Instagram was replicating Snap's business model with ease and with speed and that was clear to all investors. We recommended that investors not buy the stock. Some chose to make their bets anyway knowing the challenges Snap faced. They lost money and are now trying to recoup. I've seen this occur throughout my career.

  • Over promising and under performing? Whether the lawsuit is without merit or not the courts can decide, but it seems weird that a shareholder or investor would not have had a better understanding of the decidedly small market Snapchat was entering. Messaging apps at the time had few competitors and Instagram

    Over promising and under performing? Whether the lawsuit is without merit or not the courts can decide, but it seems weird that a shareholder or investor would not have had a better understanding of the decidedly small market Snapchat was entering. Messaging apps at the time had few competitors and Instagram had already defeated numerous picture posting apps. WhatsApp was probably the closest thing to a real competitor with its end-to-end encryption, but its acquisition by Facebook in 2014, and Facebook's earlier Instagram purchase in 2012 made it clear to even the least interested parties that competition was not only small, but fierce.

  • Snap’s market cap

    IPO (3/2/2017)→ $33 billion

    Today (11/13/2018)→ $8.7 billion

  • Underplaying risk and overplaying confidence is a hallmark of companies that have only ever raised more and more private cash. Boldness sells to VC.

    These are the growing pains of becoming a public company—the allegations involved in the lawsuit are from when Snapchat was marketing their IPO.

    Hopefully

    Underplaying risk and overplaying confidence is a hallmark of companies that have only ever raised more and more private cash. Boldness sells to VC.

    These are the growing pains of becoming a public company—the allegations involved in the lawsuit are from when Snapchat was marketing their IPO.

    Hopefully the leadership has learned as time has passed.

  • They went public as a “camera company”. That should have been the first indicator that things were not as they seemed.

  • Although one day Snap may recover losses, the journey will be a long one with much required innovation over years to occur.

  • The irony of betting on a company whos value proposition is making media disappear.

  • Sour grapes