Snap stock is a must buy here’s why – Part 3
This is the last post of the three part series – Snap stock is a must buy here’s why
- Acquisitions –
Let’s look at all the acquisition’s that Snap’s made till date (Let’s list all the major one’s we know so far) –
Couple of AR companies, Drone/camera related, Emoji’s, location related companies. Let’s list them all and dig further –
Here’s the complete list to all the acquisitions till date – https://www.crunchbase.com/organization/snapchat/acquisitions
What can we get out of this -? (From Snap’s perspective)
- Strong.codes – Lets bloody stop FB and Instagram copying our innovations and hard work! Good job here Spiegel.
- Zenly – Location based company – Are you still not into Snap maps? It’s really good. Give it a shot once. You can see the location of all your friends and the best part what’s happening around. UI/UX is great and the functionality is super awesome and raw footage of the happenings around your city or world. No filters whatsoever! Copy that Instagram.
- Placed – Location based company again – which can help Snap drive up the revenue. Huge advertising potential with this.
- Control Me robotics – Snap’s vision towards being a camera company, drone making, spectacle V2.0?
- Bitstrips – This one is really good, Toronto based Bitstrips, great investment – single advantage – bitmoji is super fun for everyone and it’s integrated into the keyboard of the OS in the phone. I strongly believe snap’s plans to integrate somehow of launching snapchat from the keyboard or a keyboard shortcut using bitmoji. Let’s wait and watch.
- Scan and Add Live – Used to scan and add friends. Definitely can be monetized going further with scan feature that’s built in.
Apart from the above acquisitions, snap has acquired few advertorial companies and couple others which I am not sure of. But looking at the investments and the vision they have these look great. Yes, they have spent a lot of money in a short time but you got to have a long term vision of the company you run. That’s what I understand out of this. Do not forget the recent talks about Zero robotics and hover drone. Let’s wait and watch for further updates.
7.Cloud expenditure –
The question is – Why the hell is snap spending close to 2B over the next few years on hosting? Why couldn’t they build their own? I had the same question too.
Here’s the answer –
Yes, it’s definitely complex to build data infrastructure and scale. Snap relative new in this needs to hire experts, build a team of professionals and scale it up. Should happen over a period of time, but right now with all the other things they are doing (advertorial revenue, innovation, products, R&D) it’s not the right time. Also what if snapchat goes down while they build the infrastructure and something goes wrong while they test it. Their entire business cans turmoil with this (advertiser and user fury).
8. VR capabilities
I am sure you all had a look at the dancing dog which got close to 1.5 billion views and was everywhere around. The entire industry took a note of it. Almost all the biggies are into AR but snap was the first to showcase something practical to the world. Yes it might be something silly or stupid but hey you know what you got to have guts to show something practical and show it to the world that yes we can instead of only demoing. Now Snap is the market leader in terms of AR and its possibilities (first to release something). Yes the Facebook’s, apple will enter the market. But Snaps constantly working on it and you should see something up soon (spectacles may be?) Snap can use AR in a wide range of its products – Maps (advertisements), spectacles (location based ads), and camera? The possibilities are endless.
Finally, remember the same wall street analysts who are betting big on Facebook today and say it’s a must buy were against the stock when it went IPO, while FB was in profits. Reason? They thought Facebook couldn’t monetize ads on mobile. What do you say about this? Apple stock recently went up like crazy after the quarterly reports and they showing that their services revenue is almost as fortune 100 company and they don’t really depend on iPhone earnings alone.
I am not expecting anything positive from this stock in the near future, but in the long run yes I believe the stock will do great with all the innovations and executions. Don’t forget Snap calls itself a camera company and not another social network company. Snapchat was just a start off for them, but you should see them branching out into multiple ventures in the future. Don’t be one among the crowd. Standout. No I am not asking you to buy Snap stock, but have a voice, research and find out. Have a vision and believe. Snap is still one of the best stocks to buy. I definitely believe in snap stock and own them too (around 800 today). If I lose money on it I seriously don’t care. I believe in what I do. Snap stock definitely looks promising to me in the long run. As long they continue to innovate, snap inc should be doing fine.