Are you a Snapchatter? Here’s the long and the short of this great company. Check out Snap (SNAP) (May 10, 2017)
Snap Twit ( NYSE:SNAP ). This is a stock you want to stay away from. Even at 17.50 you want to stay away from it. Though, I will tell you this, I did buy some after market for the snapback on Snapchat ( NYSE:SNAP ) tomorrow. It is an oversold bounce. Look, they missed on their revenues. They missed on their earnings. They missed on their growth, their number of users. I am just telling you, this is another Twitter ( NYSE:TWTR ) only without the 140 characters. Twitter ( NYSE:TWTR ), from the time they opened, down to the bottom, they lost like 70 percent of their market cap. It took them over two and a half years to do it. I don’t think it is going to take Snapchat ( NYSE:SNAP ) that long; I think they are very efficient in losing their money.
Look, are you on Snapchat ( NYSE:SNAP )? No. Probably about 5 of you that are listening to my video are on Snapchat ( NYSE:SNAP ). And I will ask you this, are your parents on Snapchat ( NYSE:SNAP )? It is nice that you are watching my video, but nobody that can buy anything is on Snapchat ( NYSE:SNAP ). I know, I get it, as far as, “Well no, the young kids that are on it, they are consumers too.” Okay, great! Fine. Here is the price of the stock (22.98), I rest my case. I have heard somebody saying, “Well, the stock went public at 17.00. So at some point we knew it would come down to test that level.” Okay, guys, I don’t know about you, I didn’t get any stock at 17.00. Well, I have never owned this stock until about an hour ago. I didn’t get any stock at 17.00, I don’t know anybody who did. I am sure a bunch of folks bought it here at the opening print at about 24.00, and a lot of them are still riding it down.
This stock is ultimately going to be a teenager. It is already a teenager, it is going to be an adolescent and pretty soon it is going to be a hat size.Be long this stock tomorrow for an oversold bounce. If you think this is the opportunity of a lifetime, think about this, and I have seen this argument made by analysts who are bullish on the company, “Oh, well look at Facebook ( NASDAQ:FB ). Facebook ( NASDAQ:FB ) went public and they lost over half their market cap and that was the buy of the century.” Do you really think Snapchat ( NYSE:SNAP ) is the next Facebook ( NASDAQ:FB )? No. I think Snapchat ( NYSE:SNAP ) is the next company that Facebook ( NASDAQ:FB ) kills because they are doing the same thing that they’re doing.
I would stay away from Snapchat ( NYSE:SNAP ) unless it is tomorrow for an oversold bounce. And by the way, my stepson had a Snapchat ( NYSE:SNAP ) account. He was over and showing me how I could get the puppy dog look on my face. I take this personal, it wouldn’t even do facial recognition on my face. It wasn’t recognizing me, so I have got a feeling that somehow the app knows that I and not really bullish, it is not letting me participate. What I am telling you is, that is okay with me. You participate in the oversold bounce tomorrow and then you sell this stock, after another day or two, when the shorts are done covering. That is how I would trade Snap Twit ( NYSE:SNAP ) here.