Link to join StockHub free investing discord server: –~–
Holy smokers guys snapchat stock has gone absolutely terrible ik as of taking this screenshot snapchat stock is up over 47% two day guys almost a 50% move in a one day span this is incredible it’s very rare that a company snapchat size ever moves almost 50% of day this is absolutely crazy this is for a few reasons we’re going to get into their earnings numbers in
All that i want to take you through an illustration here in just a second so we just saw how much the stock the straight stock is up right but if you look at call options okay look at how much some of these call options are up fifteen hundred percent on the sixteen dollar strikes the seventeen dollar strikes up two thousand seven hundred percent today the 1850s
Up forty three hundred and nineteen s up forty two hundred percent and a day guys in a day so let me take you through an illustration real quick just to kind of show you some things okay so let’s say you know you had insight you had belief that snapchat was gonna beat these numbers and we’re gonna look at the numbers here in just a second so you had insight that
Snapchats probably gonna beat these numbers pretty easily either maybe you know you work for a company an advertising company that’s advertising more and snapchat you like man these ad rates we’re having to pay you’re more expensive and we’re getting good results from them and you know that i bet you a lot of companies are doing this out there and maybe you’re on
Snapchat maybe you’re seeing more and more ads and you’re like this company is getting more and more advertising revenue in maybe you’re looking at the news out there and just a few months ago a big huge advertising firm said they would be spending a lot more money on snapchat so maybe you’re looking at news like daniel like if that huge advertising firms doing
That then probably a lot more so they’re probably gonna beat these numbers very easily analyst has brought them down so you’re like i want to play this this earnings play okay so there’s a couple ways you could done you could have bought the stock straight up okay so let’s say you had a thousand dollars you were willing to risk on this earnings okay you’re you’re
Basically just playing it for earnings now me personally i am horrible at short-term trading that’s not something i do well all i’m a long-term investor when i long term investing companies 95 plus percent of the time it works out for me when i’m short term trade it does not but let’s say you want to do the short term trade okay so you’ve got a thousand bucks
You’re willing to rest you buy a thousand dollars worth of snapchat stock yesterday okay you know the earnings would come you like think this stocks gonna skyrocket on these earnings so basically you know based upon what the stock went up you would have made around a profit in a day of around four hundred and seventy dollars based upon where the price was that
When i took that screenshot there that’s a really amazing profit in a day guys like that’s crazy to only invest a thousand make four hundred seventy dollars now think about if you had ten thousand you would have made four thousand seven hundred dollars think about if you had a hundred thousand now we’re talking about how you know forty seven thousand dollars like
The numbers start getting crazy right but that’s not the only way you could have played it so we looked at those call options there right you could have gone with something like okay i don’t want to risk a thousand dollars i have a thousand dollars i could risk but you know what i only want to risk a hundred dollars okay so you risk a hundred dollars and you buy
Some of those call options that are expiring on this coming friday right you’re basically only playing this foreign earnings so you buy some of those call options you put a hundred dollars into some of those call options so you risk way less money obviously now with call options if that stock went down you would have lost all your money correct or you would have
Lost all hundred bucks but we can say the same if you would put a thousand bucks in the stock right and then went down obviously you’re gonna lose probably at least a hundred bucks there as well okay so you you’re risking two hundred dollars you buy these call options right and let’s say you bought those call options that are up you know forty two hundred percent
Basically you made a profit of four thousand two hundred dollars in a one day period off of a $100 investment guy’s a $100 investment you just made a profit of four thousand two hundred dollars in a day that is crazy now think if you had a thousand dollars obviously the more money is the riskier and riskier but think about the the way the numbers can go up in a
Day guys it gets to be absolutely unbelievable so options can be very powerful for any of you guys out there that are doing short-term stuff make sure if you have not already gotten in my stock market membership you group you get in there that’s got a full twelve part options course in there that will teach you everything you need to know about options third link
In the description there you can cancel your membership at any time most people that join it love to be in there long term all right guys let’s get into these numbers here so snapchat so the first thing i think when i think about like what stock going up parabolically like that is i think what’s the short interest on that stock we got to have some type of you know
Basically a huge amount of shares that are short and there’s a short squeeze type situation going so as of january 12th is the most recent information i could find there are short interest totally 94 million shares guys 94 million shares short as of january 12th okay so basically almost twenty close to 25% of the shares outstanding or actually shorted okay so which
Means if you have a situation when the stock beats huge and also an investor’s start to pile in the stock the short sells and start having to be forced to cover their shares right otherwise they’re going to get killed even more and more when they cover their shares even more and more what ends up happening that stocks shoots up more and more because basically they’re
Buying back shares so it’s puts even more pliers into the stock guys so it creates a situation like this where the stock just goes absolutely unbelievably insane in a day ok so let’s look at these actual numbers here snapchats fourth-quarter numbers were significantly higher than wall street expectations with sales of 285 million or a 72% increase over the same period
Last year and they lost 350 million dollars that’s a huge loss by the way they’re guys that’s a huge loss loss of 350 million dollars but analysts were expecting somewhere around two hundred and fifty five million so it’s a pretty decent beat there on the the top line and they were expecting them to lose around four hundred and five million dollars on the bottom line
There so they lost us money than they’re supposed to lose they had more revenue than they were supposed to have so those are two very good things and there’s also some some better things when i looked into it here in just a second so in a letter to investors issued today spiegel lays out the case for snapchats willingness to respond to increase competition from
Facebook and snapshots growth struggles he also writes at linkedin the snapchats redesigned additionally we believe the redesign has also made the applications simpler and easier to use especially for older users which is very key if snapchat really wants to succeed over the long term they definitely got to get you older users online you need advertisers to pay a
Lot of money to get in all the faces of 30 40 50 60 year-olds if they’re not gonna ever get those then you’re going to be very limited right compared to the old design core metrics around content consumption and time spent and the redesigned application are disproportionately higher for users over the age of 35 years all which bodes for increasing engagement among
Older users and that will continue to grow the business okay now what also excited wall street was not just that they beat on revenue and they lost us money than they were supposed to lose but also the daily active users came in at 187 million that was versus 184 million was expected says a very nice beat there on daily active users also average revenue per user or
Poo came in with a very nice beat they came in with the dollar 53 per user compared to around a dollar 36 was expected okay so a snapchat as far as snapchat goes do you guys know i’m a long-term believer in the company i’ve said that many times when i’ve talked about snapchat in the past i’ve never personally bought into snapchat my wife bought into a little bit of
Shares she’s like less than 2% of her shares or in snapchat she bought in those in the ipo i’ve never personally bought into snapchat not because i don’t believe in it because i do for the long-term just because i don’t like owning these companies that are losing tons of money guys i did that with gopro and we saw what happened to me would go pro i got absolutely
Destroyed with that stock so therefore i believe in in buying profitable businesses snapchat is not a profitable business it will not be a profitable business any time in the short term maybe potentially long term but these stocks are too dangerous for someone like myself to get into so which is why i don’t play with any of these companies that are losing tons of
Money and i just have no interest in and there’s too much to be seen down the road i like buying profitable companies i actually have a p/e ratio on not companies that are losing 350 million dollars in a quarter but i do believe in snapchat for the long term we’re gonna see where that business goes next story up here is steve when oh boy he has finally stepped
Down as ceo i told you guys he should have done this quite a while ago i’m surprised he waited so long to do it so he has stepped down now this came out last night it is with our collective heavy heart that the board of directors of wynn resort today accepted the resignation of founder ceo and friend steve when one of our director said wynn has obviously denied
The accusations of misconduct several times and whatnot in the last couple of this is coming from when now in the last couple weeks i’ve found myself the focus of an avalanche of negative publicity wynn said in a statement as i however reflected upon the environment this has created one in which a rush to judgment takes press it it’s over everything else including
The facts i have reached the conclusion i cannot continue to be effective in my current roles okay and so basically wynn resorts is a point of mathematics i thought they would probably appoint him as ceo now of the company okay you know a lot of people are like you know saying this might be horrible for the company might be you know good for the company in my
Opinion because of the chance that they could potentially you know lose gaming licenses because this is a black eye you know in the macau market we know the boston property is getting built right now you don’t want a situation where your ceo and one of your biggest shareholders of the company that they could face the company of the chairman of the board is in these
Type of accusations and in these type of situations where this lawsuit comes out that was never you know where he basically settled for seven and a half million dollars this information was never came out in a lot of these you know public hearings and whatnot it’s a bad situation guys in my opinion he had to step down i mentioned this back you know a week or two
Ago whenever the news broke i said you know i think he’s just got to step down at this point i’m he finally made the decision i’m sure it’s a hard decision for him because it’s a company he found it that’s never an easy decision to make obviously you guys so very interesting here so having served as ceo and chairman of wynn resorts since 2002 the billionaire mogul
Has agreements in place that could force a casino operator to pay him a sum of money hefty enough to sustain the economy we have an island nation steve wynn’s whose net worth of around 3.4 billion more after today because the stock is up i think close to 10% today may collect more than three hundred and thirty million dollars for stepping down even though he’s
Under fire for sexual harassment accusations okay so let’s look here so i was founder of wynn resorts however steve wynn’s long-standing employment agreement provides for a massive severance passion package if he is terminated without cause or by his own violation for good reason what does that mean for good reason as this counters for good reason or not not only
Has wooden resorts promised to pay its top executive their salary and bonuses each year for the remaining in their contracts as ceo has a special agreement and it gives him a big extra boost steve wynn is entitled to receive triple his annual allotment for the mack some of up to four years because it wins employment contract gates ends through the fall of 2022 so
About four years from now he could receive three times his annual salary foreign bonus for the next four years this means the salary of 2.5 million would balloon to a payout around ten million and his latest bonus of twenty five million split evenly between cash and stock we multiplied to around 300 million adding up to a total of around three hundred and thirty
Million dollars now the question is you know was this for good reason or was this more something he just had to do i don’t know where that’s gonna all work out what i do know as far as you know short term stuff if if he does have to get paid off that 330 million you know it could hurt the stock in the short term but a long term that’s such a great company in such
A well-run company you know as long as there’s a good economic environment that company is gonna thrive for years to come when there’s obviously a downturn that company will be hit very hard but when the times a good man they make a lot of money over there so i would love to see in those comments what you guys think about snapchat what you guys think about steve
Wynn stepping down did you think it was a move he had a make i love to hear your guy’s opinion there on that make sure if you’re not already getting my stock market membership group like i said that’s got the twelve part full options course in it’s a third link in the description down there you definitely want to join get in there guys you’re within there with
Over 300 super serious investors thank you for watching and have a great day
Transcribed from video
Snapchat Stock Skyrockets! Steve Wynn Done! By Financial Education
