How Snapchat Destroyed $120 Billion
Рет қаралды 87,401
Күн бұрынThis video is sponsored by Privacy.com. Protect your financial identity online using virtual cards and get $5 off your first purchase at privacy.com/wsm
In this video we go over the rise and fall of social media company Snapchat, whose stock price has fallen more than 80% from its all time highs.
All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
0:00 - 1:52 Intro
1:53 - 3:01 Privacy.com sponsorship
3:02 - 4:15 Snapchat early days
4:16 - 5:56 Reggie Brown controversy
5:57 - 7:14 Rapid growth and IPO
7:15 - 8:51 2018 redesign
8:52 - 9:30 Android version
9:31 - 10:00 Instagram competition
10:01 - 10:49 Snapchat turnaround
10:50 - 12:31 Bubble valuation
12:32 - 15:16 Bubble pops
15:17 - 16:48 Corporate dictatorship
16:49 What's next for Snapchat?
#Wallstreetmillennial #Snapchat
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@wallstreetmillennial 2 жыл бұрын
This video is sponsored by Privacy.com. Protect your financial identity online using virtual cards and get $5 off your first purchase at privacy.com/wsm
@amutah8063 2 жыл бұрын
It didn't destroy anything! It was just extremely overvalued.
@corbielentertainment 2 жыл бұрын
Explain this to people who hate on musk. He's also overvalued he even says it... Lol
@xxdarthxmurderwolfxx4621 2 жыл бұрын
It destroyed its value lol
@hpdpco6634 2 жыл бұрын
Tinder killed snapchat
@vaughnreedjr6592 2 жыл бұрын
@@jamesbrown4364 stock market. Not accurate. Ford has more cash than tesla.
@jamesbrown4364 2 жыл бұрын
@@vaughnreedjr6592 I meant stock marketcap wise (Basically saying tesla is a giant bubble)
@pauldacus4590 2 жыл бұрын
Better title: _How insane investors thought a camera app was worth over $100 billion_
@codycast 2 жыл бұрын
Exactly.
@bigbangtheory1185 2 жыл бұрын
Lol makes alot of sens when you put it that way
@chiefenumclaw7960 2 жыл бұрын
But it's a DisRupTivE technawledgy!
@PeacockRhino 2 жыл бұрын
Nasdaq is full of them. I won’t mention We Work and Theranos. For some reason people think that using the word Tech makes a stock far more valuable than it actually is.
@booneboone9705 2 жыл бұрын
@@PeacockRhino WeWork never had an IPO and Theranos (also never IPO) was shut down after the scandal.
@carthicss1 2 жыл бұрын
The valuation was insane right from the start. There's no logic behind valuation anymore.
@feiketje4000 2 жыл бұрын
All we can say is: Evan and Bobby are not certified bros :(
@Jeromeromesheltonrecordspolice 2 жыл бұрын
Lol
@Emerald_Forge 2 жыл бұрын
:(
@SS-_.1 2 жыл бұрын
Many of these cash burning, loss making "growth stocks" are bubbles waiting to get popped.
@sabilaahmad3731 2 жыл бұрын
Within current conditions i prefer to commodity stock company, because their fundamentally is good and measurable with market conditions.
@Abhishek-kg3jr 2 жыл бұрын
Snapchat has become absurd nowadays
@mjmulenga3 2 жыл бұрын
The modern trend of Silicon Valley to focus on growth at all costs rather than profitability or real value is the actual issue here.
@exoticbutters2781 2 жыл бұрын
I think Snap mades several blunders that will ultimately lead to their demise if they don't pivot. Spectacles was a bad idea but rolling them out via vending machines was just bad. Paying millions for people to uploading stolen tiktok videos is another. And now a drone with a 4hr battery life that can only take selfies, did they have no one in the R&D dept that said this was a bad idea? But I think the biggest blunder was classifying their business as a camera company instead of a software/platform company. If they continue at this trajectory, it won't be good for them. But I'm sure FB and other big boys would acquire them.
@palillo2006 2 жыл бұрын
Not just that but they put like a 90% effort to one platform, iOS. They could have improved the Android app to get more people using the app. The app on Android was buggy, laggy, the photos reduced in quality, and had a bad battery drain problem.
@bccsivxx-xxivvii 2 жыл бұрын
How does classifying themselves as a camera company instead of a software company make any difference with anything? Either they make money or they don't.
@elvisochieng6267 2 жыл бұрын
Fb tried to acquire them but they refused
@CouragePope 2 жыл бұрын
Pixy looks like a very interesting idea. I know for sure there is a market to replace tripods and selfie sticks. If it is easy enough to use that will be big money
@youdontsay2529 2 жыл бұрын
Am more impressed that it still exists.
@blackd98 2 жыл бұрын
Another app who's growth was related to the pendemic and expected it to last forever. Sooner or later its was going to be over and people would go back to "regular" life and usage would drop and with the revenue.
@truth.speaker 2 жыл бұрын
80% devaluation isn't fair it needs to drop 98% or more
@davturbok9 2 жыл бұрын
Its funny how they optimize snapchat app for apple users yet now apple new privacy policy is affecting their advertising revenue 😆
@nerkey4752 2 жыл бұрын
Good thing I have ad blocker this guy have this vid full of ads smh.. damn, it's ridiculous
@hiimjustin8826 2 жыл бұрын
All the tech stocks are getting pummeled but some of them are either evil or not ran like a company designed to make money so all fine. Seems like a good time to invest in the more well-known brands because worst comes to worst companies like Snapchat will probably get bought anyway.
@parkeraustin2414 2 жыл бұрын
You do realize the “evil” ones are being evil to make money.
@bccsivxx-xxivvii 2 жыл бұрын
@@parkeraustin2414 Yea, the evil ones are usually the ones that make the most money, the ones you want to invest in, like CVX, XOM, etc.
@Emerald_Forge 2 жыл бұрын
@@parkeraustin2414 That makes so much of a of a difference!
@hiimjustin8826 2 жыл бұрын
@@parkeraustin2414 Yes, but some are evil and don't make money lol. Like Uber
@tomatoman7506 2 жыл бұрын
@@hiimjustin8826 Uber fired Travis kalanick due to wokeness. Otherwise it would have done fine.
@T4KKFI 2 жыл бұрын
Snap is a pump and dump stock. Don't be that naive in believing this company will be impactful for the long term. Stocks not contributing to American innovation is A joke and I'll be delighted in shorting the hype tickers
@wouldntyouliketoknow9891 2 жыл бұрын
Snapchat was NEVER worth $140 billion. In fact, based on market fundamentals, it probably was never worth more than a few billion. Perhaps $5 billion at most. Everything beyond that was just wild greedy investor speculation and had nothing to do with the company or its product. So based on that, snapchat is probably still overvalued and needs to fall more.
@joeaverage3444 2 жыл бұрын
Tech companies in a bull market quite often ride a wave of optimism about future earnings that is unlike in many other sectors. And for a while, it will seem that rising share price valuations make up for the sketchiness of a business model and a thus-far absence of real profitability. But when those pipe dreams fail or when the market is going through a general slump in tech optimism about the future, then those tech stocks tend to come back down to Earth, where robust, tangible profits are the result of hard graft and not of lofty promises. Over the space of decades, markets seem to make those mistakes over and over again, in a strange reiteration of the same old manic depressive amnesia that got people burned the last time.
@herkiee1 2 жыл бұрын
They didn't destroy anything. It's just a transfer of money
@kevinavila9489 2 жыл бұрын
who'd it go to then
@samsonsoturian6013 2 жыл бұрын
And eliminated paper value.
@samsonsoturian6013 2 жыл бұрын
@@kevinavila9489 whomever sold
@taylorbug9 2 жыл бұрын
@@kevinavila9489 most money doesn't even exist these days. They're just zeros in the computer.
@kevinavila9489 2 жыл бұрын
@@taylorbug9 yes and destroying something doesnt really mean taking an axe and chopping it to bits
@tropicalpnch4549 2 жыл бұрын
i could never figure out how to use the app and I figured it was the start of me becoming old 😅
@NathanVu 2 жыл бұрын
I totally forgot about Snapchat until I saw this video. Can't believe they are still around.
@moonshadow7057 2 жыл бұрын
still, can someone explain why a company’s revenue growth even matters when most companies don’t share a penny of their profits with the so called shareholders?
@octagon69 2 жыл бұрын
The hope is they eventually buy back shares and raise the price of the average shares. Or they are hoping the bigger fool bids it up. SNAP wasn't even profitable to buy back shares or issue a dividend and etc.
@moonshadow7057 2 жыл бұрын
@@octagon69 yeah why would companies choose to voluntarily buy back shares, that is, to use real money to buy back essentially worthless "shares" that they can issue as many as they would like? And what would happen to them if they just never buy back shares? I read some time ago that companies often buy back shares before they issue much more shares to sell to the investors. A scam, a big scam
@nicholasbento3257 2 жыл бұрын
I was heavily swing trading this last year, writing puts and sometimes just buying 100 shares and writing calls. I made a good amount of money and got ridiculously lucky that I did not lose a lot, I got kind of nervous when it was in the 60-70$ price range and backed off of it, I remember after one of their earnings reports it went from like $70 down into the 50s, right about the time after I stopped trading it.
@turbyoulance 2 жыл бұрын
Why would you pay OVER's for a company that hasn't turned a RED Cent in profit. It's a Liability and is dying. No good offering up it's problem's , they need to offer up solution's
@andreaskarlsson83 2 жыл бұрын
Good video!
@kbram7363 2 жыл бұрын
Your videos are impressive sir
@ralphstern2845 28 күн бұрын
Well done,again
@NarutoArenaCx 2 жыл бұрын
Very glad I never invested in this. I am deep in DOGE though, big sad.
@qbek_san 2 жыл бұрын
xD
@harry8912 2 жыл бұрын
It’s not just Snapchat. It’s the whole tech sector as a whole, there’s surely some undervalued Tech stocks now especially growth stocks. I got into a few but bled massively from it, my portfolio is down 70% YTD.
@Jeromeromesheltonrecordspolice 2 жыл бұрын
I’m learning now that most of these social media sites are founded by college drop outs
@lucasglowacki4683 2 жыл бұрын
There’s always a third guy🙄😂
@Jeromeromesheltonrecordspolice 2 жыл бұрын
Never understood how to use it and I’m too old for it I had a Snapchat and then deleted it
@HighestIQ 2 жыл бұрын
I'd have issued so much new stock at those prices.
@jantschierschky3461 2 жыл бұрын
I invest in businesses that have good fundamentals and are profitable. To me investing in those start-ups is extremely risky, if you time it right you can make money, however most will lose money.
@patrickjeffers7864 2 жыл бұрын
They did an update 2016? Forgot..but after that, I quit. Even Rhianna was like "why is an update more difficult than the original?"..didn't they also reject a fb offer?
@patrickjeffers7864 2 жыл бұрын
Sorry, 2018
@Kodakcompactdisc 2 жыл бұрын
If Ri Ri’s out I’m out.
@goneutt 2 жыл бұрын
I find any app popular with children and youths to be short lived because there’s a new one for the next batch of 13 year olds to find.
@franciscodanconia4324 2 жыл бұрын
That’s why FB keeps buying them. FB became old hat so they bought Insta. Now Insta is getting old hat. It’s a rat race I never want to invest money in.
@turbyoulance 2 жыл бұрын
$napchat is useless. It is yesterdays news in Australia and was always very very underused.I would severely short it if I was in a position to.
@XO43137 Жыл бұрын
Sounds like Twitter too. Money has no friends.
@dwaynebell7705 2 жыл бұрын
I do remember the internet stock crash of 2000. Welcome to 2000 take 2!
@thegoldstandard55 2 жыл бұрын
Evan sold most of his stock. This collapse was all intentional.
@Foxyfreedom 2 жыл бұрын
Why is the logo a floating white ghost blanket?
@choppergirl 2 жыл бұрын
never heard of it
@Deloowix 2 жыл бұрын
Can Snapchat declare dividends to only shares held by the founders and executives, but not to the common shareholders?
@williamerazo3921 2 жыл бұрын
What value does it brings ?
@Whatisthisstupidfinghandle 2 жыл бұрын
I feel like they were a thing for a while then everyone went back to instagram then TikTok came along and even more people stopped caring about snap
@Kodakcompactdisc 2 жыл бұрын
Snapchat is the best social media by a mile.
@samsonsoturian6013 2 жыл бұрын
Is it just me or are old rich dudes too eager to go all in with companies seen as young and hip?
@nomooon 2 жыл бұрын
they just go all in on things they don't understand. Like theranos.
@samsonsoturian6013 2 жыл бұрын
@@nomooon True, same with all the autists going all in on cash burning innovation stocks
@channul4887 2 жыл бұрын
@@nomooon "they just go all in on things they don't understand." LOL, you're cute when you're naive, you realise that?
@Yu1551 2 жыл бұрын
@@channul4887 cringe
@channul4887 2 жыл бұрын
@@Yu1551 I know, how cringe is that naive muppet, eh?
@jahjoeka 2 жыл бұрын
13:44 def saw that pretty sad girl before.
@christpunchers Жыл бұрын
Nobody uses Snapchat when they have Twitter, Facebook, KZfaq, Instagram, and of course, TikTok
@VHSCLIPS 2 жыл бұрын
In love your content but maybe you need better soundcard or mic
@hiimjustin8826 2 жыл бұрын
I like that it doesn't sound over-engineered.
@carly09et 2 жыл бұрын
Considering Snapchats numbers were "faked" ... the drop was predictable. The share value is maybe $3 lots of room to fall.
@bigbangtheory1185 2 жыл бұрын
Heading towards $7
@tosinsonaike977 2 жыл бұрын
Absolutely overvalued
@i_i8924 2 жыл бұрын
These tech companies think they can just burn through money like its water esp during times like now in a down market, fucking nuts.
@funmilayotijani3119 2 жыл бұрын
I've always though Snapchat was a bad investment
@harlyslamm2888 2 жыл бұрын
snap is the next facebook! Trust me bro
@mammajamma4397 Жыл бұрын
Ummm, can't you work around the whole point of Snapchat by screenshotting and/or doing a screen record? Are those functions disabled on Snapchat???
@Hshjshshjsj72727 Ай бұрын
It is a duhm app and not encrypted but it alerts if screenshot
@GentlemansCombatives 8 ай бұрын
Snapchat buying and then killing gfycat makes me so mad
@cooldudecs 2 жыл бұрын
Capital is getting more expensive…
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@ProfAzimov Жыл бұрын
16:33 Whoa, whoa. Get the profits before saying what you are going to do.
@batsiraimalvernmugomba6467 2 жыл бұрын
Bubbles bubbles bubbles
@samsonsoturian6013 2 жыл бұрын
[Snap] My bubbles
@hiimjustin8826 2 жыл бұрын
Housing market when?
@ferrarikg 2 жыл бұрын
Feels like a Jacuzzi
@KangaMoose34 2 жыл бұрын
They didn’t make any money, it’s expensive to borrow and the days of the hopes that a company might make money one day are over
@EEZYEEEE 2 жыл бұрын
Daily Active Users… (cough) bots.
@wesuda Жыл бұрын
Snapchat is a such a wasteland of time tbh
@jantschierschky3461 2 жыл бұрын
Spiegel, not speigel
@sgatea74 2 жыл бұрын
Snapchat in a mission to chage the world ? What change ? 😂
@doug282 2 жыл бұрын
I always knew not to invest a penny into this company. He should've sold to FB
@live_in_thejoy3942 2 жыл бұрын
None of these social media platforms are profitable…… mostly because they aren’t real 🙄
@drek273 2 жыл бұрын
It was supremely overvalued
@mattmmilli8287 Жыл бұрын
Their AR glasses are beyond trash. Buggy and overheat trying to render annnnnything
@TopShot501st 2 жыл бұрын
This downturn will cull the weak tech from the herd.
@franciscodanconia4324 2 жыл бұрын
At least these huge drops in tech companies helps point out the stupidity of a wealth tax. The Snap founders would have had to pay taxes based on the year end 2021 valuation of $45. But on April 15 Snap was worth $35. Unless they are allowed to adjust the basis down at the time of paying tax they’d be paying taxes on 25% of value that just evaporated into thin air.
@sago22 2 жыл бұрын
Tech bubble 2.0
@Josh-py9rq 2 жыл бұрын
I made a ton from Snapchat then took profits and ran lol
@imeldomarcos4126 2 жыл бұрын
It was a cycle.
@thekekronomicon590 2 жыл бұрын
I'm just gonna say it. Snapchat doesn't do anything. Video chatting is stupid but I guess that's a thing they do but there are a ton of video chat app options and most phones come built in with that feature. The "secure" screenshot proof messages can be defeated by simply turning on airplane mode. The generic KZfaq section is hot garbage nobody wants to see. So basically were left with some wacky filters. They are trying to sell adds for wacky filters and I just don't see a much value in it .
@spicemasterii6775 2 жыл бұрын
Oh SNAP!!!!
@davidbrooks1724 2 жыл бұрын
Wiped out yes but was so over valued
@kapilsharmaWorld_uncensored 2 жыл бұрын
No voting rights with no plans for dividends? This should have been the biggest red flag for people while investing.
@Leosarebetter 2 жыл бұрын
No one in their right mind would have snapchat shares....
@aaronhpa 2 жыл бұрын
How can they destroy something if it has never existed?
@herban_jungle 2 жыл бұрын
Shoooot I’d rather be the third partner with a bunch of money and no responsibility
@RotneybotOfficial 2 жыл бұрын
Snapchat isn't even that good of an app.
@nestorjrabalos1998 2 жыл бұрын
Useless app. I never understood the hype on snapchat. The most pointless app ever
@SherlockMahomes99 2 жыл бұрын
Just get bought out by Meta smh
@Pernection 2 жыл бұрын
What good is Snap Chat? Your voice is too monotone
@TooLateForIeago 2 жыл бұрын
One thing I learned when experimenting with crypto: if you lose money betting that a unprofitable asset will be profitable someday, it sucks to be you.
@trj1442 2 жыл бұрын
Does silicon valley still use chimpanzees or is that so yesterday?
@xr.spedtech 2 жыл бұрын
TikTok taking the heds of all platforms ... 😑 Snap isn't really that interesting honestly ...
@deltaskyhawk 2 жыл бұрын
First mistake: thinking you can change the world.
@604h22a 2 жыл бұрын
Only China’s Covid and Putins war can do that
@andriytroyan3888 2 жыл бұрын
I honestly do not see the appeal of this app. Call me a boomer but it’s just a simpler Instagram
@snowman2834 2 жыл бұрын
Next video- birth rate dropped in the US due to Russia invading Ukraine. Cows do not produce as much milk due to Russia invading Ukraine. My wife gained 40 pounds due to Russia invading ....
@user-jt5vm3mi1w 2 жыл бұрын
tldr
@BIGGOODBOY 2 жыл бұрын
Who uses Snapchat?
@wingn3849 2 жыл бұрын
The young are a fickle bunch
@professionalinsultant3206 2 жыл бұрын
snapchat is trash
@XO43137 Жыл бұрын
Why do you use so many useless stock videos? They are really distracting. Show yourself talking. Much better.
@infernoboi92 2 жыл бұрын
Literally only boomers use snapchat
@719field 2 жыл бұрын
Snapchat didn't "destroy" anything. Your titles often sound stupid and you need to fix them. The rest of your stuff is good but your titles always sound ignorant.
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kinorushka
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