News Details – Smallcapnetwork
Snapchats or Tweets - A Growing Debate Between Two Stocks
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February 2, 2024

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PDT

Our thoughts and prayers go out to all of the families that fell victim to another horrible act of terror last night over in Manchester, England. Such a sad event for so many families who just wanted to go to a concert and have a little fun. Life is so precious. What a brutal and evil world we can live in at times. It makes trying to say anything positive today tough, but I did have a little debate here earlier this morning about how some think Snap (SNAP) has a huge future, and how I think Twitter (TWTR) will likely become the single fastest most efficient way anyone around the world can get news. It's already like that already, however, it doesn't seem as though the company itself has quite figured that out yet. The quick debate this morning was centered around which stock is the better buy right now - Snap (SNAP), an already failed IPO at this point, or Twitter (TWTR), a failed stock for so many reasons following its highs of over $70 per share back in late 2013. From a valuation perspective - right or wrong - I don't think it's even close. Although Twitter has less users, the company itself is far more mature in dealing with being a public company. Its market cap is almost half of what SNAP's is and they have a fairly equal cash balance compared to each other. The biggest reason I like TWTR better for the long haul though is I still don't think the company has fully realized its long-term potential yet. It might be a bit of a rocky road between here and there, but I'm almost certain when we look back ten years from now TWTR is going to end up being the largest news organization on planet earth. Of course SNAP's founders and management were brilliant in what they created, but it definitely doesn't mean they know what they're doing as a public company yet. Look at what GoPro (GPRO) has had to deal with. The public markets are brutal. They don't accept excuses, and they definitely don't appreciate arrogance, something the current SNAP CEO has recently been accused of having too much of. So snapchats or tweets? I'll still go with tweets for now. Facebook (FB) is making inroads to compete with Snap via Instagram and their own platform, so maybe if SNAP wants to make it as a public company, they should buy GoPro, integrate their cult like brand and learn from them as a public company while they're at it. That type of hardware and software cultural integration would actually make Snap a very interesting company for the future. However, how are they going to monetize something primarily used by teens and kids in the meantime? This younger generation is about free. They don't respond well to advertising and they're living under mom and dad's roof for much longer these days. Why? Because it's just much more expensive to live anymore. We're already seeing retail struggling, along with just about every other form of spending - minus video games, travel and experiences in general, so what's Snap going to do to wow Wall Street? You tell me. It's an open debate and a topic I'd love your feedback on. Then again, maybe Snap and Twitter should just merge. That way everyone can snaptweet all day long.