Will Snapchat Stay Above $10 and In Business?

Short Answer: Snapchat, Inc. can change their future (and their share price) if the executive team stops fighting losing battles they can never win with FB. There are obvious areas for them to profitably pivot to.

As of this post, Snapchat is in a losing slug fest with Facebook in the photo sharing space. Facebook has launched slick looking Snapchat like knockoffs across their Facebook, Instagram and Whatsapp platforms. Each of these platforms have 1+ billion users each and are effectively keeping users from leaking into the Snapchat ecosystem. Each of these Facebook platforms individually is larger with more active users than Snapchat which make them very sticky to leave.

It should also be addressed that Snapchat has lost its original claim to fame which was the ability to share photos that would disappear. Unfortunately for Snapchat the app was (and is) too easy to hack and retrieve the photos. People who were encouraged to share photos they otherwise wouldn't via the internet were being marketed a product which did notdeliver the protection and privacy they were promised. There are lists of free and paid apps people can download to automatically save photos even when the creator thinks the photo will vanish. 

This is a huge issue for Snapchat which has suffered from stagnating user growth, falling revenues, increased unprofitablity, increased layoffs, and more issues than they seem to know what to do with. It seems clearer every day that Snapchat needs to move into other spaces besides photo sharing in order to remain viable as a publicly listed stock and even as a company. Unless they start to make some serious changes into additional areas they will die a slow death and take all of the investor money with them.

But is it all doom and gloom for Snapchat? No. They will have a great based (at this moment) to pivot into new areas and mitigate the constant beating they are receving from Facebook. After spending some time looking at what Snapchat is doing I believe they need to focus on providing business and security (blockchain) focused applications that FB currently is overlooking. Blockchains could easily be deployed by Snapchat to give people more privacy other their photos. Blockchains can limit the rights of anyone to copy and distribute a photo and more importantly the original owner can pull the rights to ensure they are the only ones with a copy of the photo. 

I'm aware this is easier said than done. As are most things in life. But I would suggest that in order for Snapchat to regain it's footing and appeal it will need to return to it's roots as a photo sharing service which provides consumers the privacy and data control they were promised. Otherwise, they are just another photo sharing service in a space dominated by Facebook and its subsidiaries.

Long story short, If Snap keeps trying to slug it out with FB in the short stories and glasses they won't make it to 2019 above $5 a share and I don't think they would make it as a listed company in 2020/2021. #SnapSlowdown

Is WeWork Worth $20 Billion?


Short answer: WeWorks valuation is shaky and depends on the executive team in 2018.

WeWork can defend and go above $20B if they make some important changes or they can become a cautionary tale of expanding too fast.

It's a great company and concept but it seems clear that they are losing steam as they grow. Many of the new offices that I have visited in the United States and Europe (since many startups choose WeWork) have the same level of quality in terms of features, on site staff, services, usable space, or even decent layouts. It's a sign of falling quality in their real estate location strategy which will impact them as more competitors come into the market with smaller more thought out portfolios to offer customers.

I would say WeWork has a solid chance at defending it's $20B valuation and growing it if the executive team rethinks their locations and offerings to remain competitive. It's a startup going thru growing pains but it's $20B valuation will come under more scrutiny in 2018 without a doubt. #weworkvalue