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Snapchat-parent SNAP stock price soars after IPO

Snap is back at it again, rising another +10% the day after its IPO. $$$ Kaching $$$. Up next: more advertising and innovation as a “camera company”.

A lot of investors and spectators have been in awe, they don’t understand what’s the fuss is about. The company has enormous revenues overshadowed by tons of costs. However, these naysayers are only looking at the financials…only focusing on if the company in the black or the red – laymen’s term: is the company “profitable”.  They need to focus on the future.

In Snap’s filing with the SEC, they state “We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability.” I view the company as a growth company, in the likes of when Twitter, Facebook, Instagram, and others were in their infancy. As of right now, people who invested in Snap are not looking at what it is now but what it can become…through innovation and advertising.

It’s important to note that Snap describes itself as a “camera company” and not a social networking site. This is key…its basically creating a new social category so that the public does not group them with the likes of Facebook or Twitter. In addition, as a camera company, it creates content: snaps, 10-second video clips, and filters and editing features to enhance unique content. Consequently, this attracts more users, more eyeballs, more views, more time spent with the product and in the end brings in more advertisers. An example of this is KFC launching the Freeze Frenzy game on Snapchat in order to attract more people to their products. In addition, if you haven’t seen already, there have been many copycats trying to get in on Snap’s territory: Facebook, Instagram, Medium and others. But none of them have yet to be able to replicate Snap’s success.

In addition, I expect Snap to bring about innovation, all camera/lense/filter related of course. They have already proved this with their technology in Snap Spectacles which allows users to take 10 second video clips and automatically sync to their account. A good example of history in the making: Dr. Ahmed using Spectacles in surgery. Result: taught 200 medical students and the world the process of repairing a hernia. This is the first of its kind and we can expect more. If this is their first product under their umbrella, just imagine what’s next.

One can only imagine what the future holds for Snap. My prediction for the future: face recognition for other applicable Internet of Things and a SnapCam drone. Back in college, I’ve always wanted a hovering video camera to follow me. Catch snaps and vids of me with friends and the debauchery of going out, and trying to remember what happened the night before. Come on…admit it…we’ve all had those experiences.

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