Update below dd
Tldr snap has begun and likely will continue to print.
I will be trading in and out for the next 6 months.
Adding dd here for context (dyor not financial advice etc etc)
Here's the thesis in short:
1. Snap went public at a 23 billion dollar valuation and had 404 million in revenue, now they are at a 14 billion dollar valuation and have 5.3 billion in revenue.
2. They have a billion monthly active users, more than 12% of the world population.
3. They are making a push to permanent net profit, they launched a subscription model in 2022 (called Snapchat+), it's now at 700 million in revenue and grew 60% y/y in q1 2025 to 15 million users. Highly expect this to continue to grow at a tier 1 rate. (3 days ago they announced if you have more than 5gb of storage you'll pay $1.99 a month or can subscribe to snapchat+ for 3.99 a month, this should move the numbers too in a very strong way)
4. Evan wrote a letter to employees and shareholders a little while back, (I'm paraphrasing here) highlighting how he's not happy where the company is at, their competitors are all valued at 5x-100x them, and if they execute properly there could be startup like returns on their publicly traded stock
5. Their stock dropped at last earnings due to a technical one time error in their ad pricing software, this has been corrected and hasn't been priced into the stock. Stock is trading at a valuation that implies doom.
Oh and a Saudi prince buying up the company. (Now owns 2.5%)
*** Update: original 70k turned into 97k within a few hours, rolled that all into 1,565 11/21 $10 calls. See y'all after earnings 🫡
