So, if you’re trying to execute the old “ buy low, sell high ” strategy, this is your opportunity to buy Snap stock low. When it does end, Snap’s growth rates will rebound vigorously, and so will Snap stock. What Snap is going through right now is a totally normal ad-spending downcycle that will be over within a year. Snap stock is crashing today as if the ad industry will never rebound. Then, everything will rebound and we will enter a multi-year period of healthy ad spending growth. History says it should last about a year. Then, ad spending rebounds as the economy stabilizes. Typically, recessions and economic slowdowns cause ad spending to drop about 5% over the course of the year. In the marketing world, that means companies are slimming their ad budgets. The macroeconomic climate has deteriorated to a point where everyone is “battening down the hatches,” so to speak. And that’s the first big reason we like Snap stock at current levels. We’re in the midst of an ad recession right now, but it won’t last forever. It’s also why they’ll probably sell Snap stock at much higher prices in a year to people that think it’s “going to the moon.” That’s why intelligent investors are probably buying Snap stock today. The intelligent investor sells high to optimists and buys low from pessimists. That is, we believe Snap stock could rally 200% over the next year. Indeed, in the chaos of the 90%-plus Snap stock collapse, we see an opportunity. The company is a disaster right now.īut a 90% drop?! For a profitable firm with positive cash flows that’s still growing its user base by nearly 20% year-over-year? Let me repeat that: One of the world’s largest social media platforms has seen its stock price collapse 90% in a year. It is now down more than 90% in just over a year. Snap stock crashed more than 25% in response to the dismal report. It seems the widespread digital ad recession is hitting Snap particularly hard. The company reported dismal third-quarter numbers last night and guided for even worse numbers next quarter. Everything seems to be falling apart at social media firm Snap ( SNAP ) right now.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |