Snap Inc. (SNAP, Financial), parent company of the camera-focused short-term communication app Snapchat, saw its share price effectively tread water between its IPO date in 2017 up until the end of 2019. The company’s share price hovered around the $20 per share mark up until 2020, tracking the flat user base as they faced increasing competition from rivals such as Meta’s (FB, Financial) Facebook Instagram, who were quick to adopt some of Snapchat’s more popular features.Then, as the pandemic hit, lockdowns caused user growth to accelerate sharply, jumping from 229 million monthly active users (MAUs) to 319 million MAU in two years, which equates to an increase of 39%. The share price went meteoric on this growth and rose by 432% up until October 2021.Then, the company released earnings and revenue that missed analysts’ estimates substantially, which they blamed on Apple’s (AAPL, Financial) new privacy policies. The company also offered poor guidance for its fourth quarter of fiscal 2021. With the share price of the stock now down 59% from highs, is the stock a buy, or is it still overvalued?Innovative business modelSnap was founded on Sept. 16, 2011 by Evan Spiegel and Bobby Murphy, who relaunched Picaboo as Snapchat.…
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Snap Inc.: Undervalued and Growing Rapidly – GuruFocus
