Snap: Market Likely Doesn't Understand The Story

Impact · against what's priced in

The article provides no material catalyst for SNAP because the market already explicitly ignores the success of its subscription business. While the author argues the stock is undervalued, the current price already declines to credit subscription scaling, meaning these figures are not new drivers of value.

SNAP+0.00

Already priced in

The price assumes

price DECLINES: A successful scaling of the subscription business (85% YoY growth) into a high-margin revenue stream

The report of subscription revenue growing 84% to $350M is almost identical to the 85% growth rate the market is already explicitly declining to credit in its current valuation.

What SNAP's price assumes · Sep 10

• cash flow▲13%
• earnings▲3%
• valuation
• SNAP
• communication services
• ebitda
• social media
• subscriptions