Snapchat: Don’t Rush to Buy This Social Media Stock | The Motley Fool

It’s been a tough ride for long-term Snap (SNAP +3.17%) investors. Once touted as a close rival to Meta Platforms’ Instagram, the relatively small social media company remains unprofitable and is down by more than 30% year to date. Investors who are betting on a turnaround may want to cut their losses and review other investment opportunities. Growth is slow and profits are nonexistent Snap’s revenue trajectory does not reflect what investors have come to expect from unprofitable, high-stakes companies. The social media company only has an annualized 8.8% revenue growth rate over the past three years. That’s much lower than Meta Platforms’ 19.9% compound annual growth rate (CAGR) over the same stretch. Today’s Change Current Price It’s impossible to even compare the two tech companies anymore. A few years ago, investors would look at Snap’s earnings to gauge how Meta Platforms would perform, and vice versa. Few investors do that anymore. Meta Platforms earned more than $200 billion in revenue over the past year, while Snapchat generated less than $10 billion over the same stretch. Image source: Getty Images. The better comparison is Pinterest, but even then, it grows faster and actually makes a profit. Snap reported an $89
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