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By oh my what an absolute disaster snapchat is it was just over two months ago that i posted a video on this channel i got 13,000 views i’m talking about how i was so displeased with the snapchat update i had the snapchat update and whatnot and i talked about how it was actually just just crap and how literally like overnight my views on snapchat when twin were
Cut by half guys it was such a bad update and that was creator after creator okay it wasn’t like it was just me coming out and displeasing you know what i thought of snapchat and whatnot just an absolute disaster i didn’t like the format of it obviously like i immediately you know became like instagram focused okay immediately overnight and i spoke about this
And i was like this is going to be a disaster for the stock well this week here snapchat stock has dropped 25% yes 25% we see on wednesday alone it dropped nearly 22% guys an absolute disastrous week for snapchats now on the $10 range literally today it hit its all-time low the stock hit its all-time low literally today of $10.51 they announced earnings in these
Earnings were horrible but i think they’re actually going to get even worse as time goes on guys this this stock is a disaster they have they have screwed that platform up so much it is insane jim cramer said that saturday’s earnings call was like a saturday night live parody i have not gotten a chance to listen to that conference call yet but he claims it’s like
A saturday night live parody which is absolutely hilarious i don’t know what happened on that conference call but i guess they just had no clue what was going on so because some of these numbers behind the company okay snaps disappointing earnings call on tuesday is yet another sign that its redesigned platform is a dud the company reported revenue of 230 million
Falling short of the 244 million expected by analysts and daily active users which came in at 191 million when 194 million was expected and the cfo said snaps growth rate in the next quarter will decelerate substantially from q1 okay the social media companies exactly have blamed it on temporary snag due to the redesign and as a result of a seasonally tougher
Corner ceo evan spiegel said as we have mentioned over the past to ernie’s calls a change this big to existing behavior comes with some disruption the fact is there snapchat update was garbage like it’s not like oh it’s gonna take some time to just work through this or whatnot like they literally had a great product and they may be into a garbage product literally
Overnight and they just turned off like there’s so many of the creators that were actually on snapchat and it’s not just creators it’s just real you know actual real people out there ok but on the creator side you know probably the biggest name in snapchat was kylie jenner she’s supposedly the most followed person literally on snapchat and she just pleased her
You know her thoughts around snapchat many times christine teigen did that you know tons i’ve huge celebrities you know talk down snapchat in kind of what happened there obviously the ratings for snapchat in the app store have fallen dramatically ok this used to be an app people loved it was like four point oh four point five you know stars in the app store like
Unbelievable and now it’s a one star you know one or two star rating in the app store absolutely horrible ok while on the flip side you’ve got instagram there and if people still love good instagram just as much if not more than they ever have an instagram gets a four point six out of five stars on the app store on the apple app store guys just an absolute you
Know the redesign it’s literally the the worst decision i’ve ever seen a company make in ten years of being in the stock market this just put it that way they had a phenomenal product and they made it into such a horrible product and this is their main product of their business not like they came out and did some new thing or something and they launched some new
Product and screwed it up so bad this is their main dog product and they totally screwed it up if you’re wondering what type of loss this company took it took a loss of three hundred and eighty four million dollars in the last three months guys they lost over there losing over a hundred million dollars per month over a hundred million dollars per month okay now
I think it’s actually gonna get worse for the company because a i see as i sexually think north american users numbers as far as daily active users is actually gonna start going down not actually increasing i think it’s actually gonna start going downward it has been increasing increasing basically since the app came out i think now we’re at a point where those
Numbers are gonna actually start decelerate and actually they’re gonna start decreasing in north america where the daily active users i think is somewhere around 81 million i think that has a great possibility of literally going negative i would say it could possibly go negative around the world but you never know some people in other countries and might just like
See it and download it and whatnot in there you know if they use it a couple days they’re technically a daily active user north america i think is gonna be the first market to start to actually go negative guys they’re taking huge losses a hundred million dollars plus a quarter they have huge you know commitments to the google cloud so they’re i think they’re
Expected to give google like four hundred million plus dollars a year and whatnot so whether they use that data or not some of those contracts this company is a disaster right now absolute disaster they’re they’re one product they have one real product in this company and it’s their snapchat platform and they literally screwed it up so bad i cannot even explain
It they’re one product guys is one product it’s not like they’d launch some new thing and that thing was a flop you know spectacles for instance or something like that they launched that and it was flopped and it’s like oh well you know some other thing we tried over here this is their one thing this is their one golden goose and their golden goose is losing i’m
A hundred million plus dollars a month so it when i look at this company i think they’re gonna have some structural problems here there’s a great possibility this company could go bankrupt within a few years you look at the cash pile right now and it’s still a huge you know i still got a lot of cash in that balance sheet well then when you start to calculate the
Numbers and you realize they’re losing a hundred plus million dollars per month and then you’re taking the fact that the users could actually start going down especially in north america which is there one market that actually makes some good money on that average you know revenue per user basis when you start calculating these numbers out it’s like i don’t know
This company might go bankrupt and who would potentially save them in that situation this isn’t like you know maybe a tesla situation where the brand is so strong and you know they got a ton of back orders for cars and whatnot and so they’re losing money now but the brand is so strong and people love the products and whatnot and they they’re like i’ve there’s like
A cult following snapchat a complete opposite people are like leaving that platform people like myself don’t even post on there when we that was like my second biggest thing i’d post on it was youtube and snapchat now it’s youtube and instagram i don’t even care about snapchat anymore like it’s it’s literally irrelevant to me that’s a totally different scenario
There so who’s gonna come and save them who who’s gonna give them the loans they need you know a few years from now if they do and they’re probably are gonna need that because whether chances they’re gonna flip this around and start making profits they could maybe go back to the old design you know and just go back i like i said i think they should have done that
Within a few weeks but management was like oh no it’s just gonna take some time for people to you know get used to it just get used to it it’s like man oh so frustrating but anyways guys you know it is what it is billionaires can make mistakes – evan spiegel made a big mistake you know with this redesign it’s gonna it’s obviously cost him you know tons of value
Already in the company and never mind what its gonna cost him over time but let me know what your guy’s opinion is on this whole subject i would love to hear from you guys do you think snapchat stock can recover you know long term or do you think you know they’re just done as a company i would love to hear from you guys in that comment section as always thank you
For watching make sure you follow me on instagram and have a great day
Transcribed from video
Snapchat Stock Crash! May Go Bankrupt! By Financial Education
