How does snapchat make money?

Should I just just short the company the day after the ipo?

I'm putting my entire roth (~80k) into this

I look at the chick and think Mr. Potato Head... I think it's the eyes, maybe the teeth, also

advertising spend, RTB

they just launched version 2.0 of their Ad Tech Platform.

Their ad API allows third parties to plug into Snapchat and start offering their advertising clients the ability to buy there through automated pipes. The first partners included companies like 4C, Adaptly, Brand Networks and TubeMogul.

Now, the roster is expanding with Kenshoo, Kinetic Social, AdParlor, HyFn, Adglow and Videology.

Also, Resolution Media, owned by Omnicom, will be the first media holding company to license an API partner's software.

and the nose

About fucking time thought on price

>About fucking time thought on price
I would like to know as well

short/buy puts after it spikes huge first day

Under $1bil in revenue, over $500mil in losses for 2016. What a winner.

these tech companies are running out of smart workers.

Corporations need to set up their own genius sperm banks to ensure a future supply of brilliant employees.

or you know, just keep hiring poos and throwing them in a blender until they by pure chance code the right thing (or at least less wrong thing)

Recruiters are now scouring high schools looking for talent. they're desperate. No college necessary.

>valuation between $20 and $25 billion.

Christ, that's utterly ridiculous. Reminds me of things like pets.com back in 2000.

Tech Bubble 2.0 is going to burst in a big way soon enough - when reality dawns on investors that many of these social media companies are losing money hand over fist. Other corporations already seem to be cottoning on to the fact that the advertising costs are extortionate and not at all worth it.

I call bullshit. Theres daily posts on /g/ of people with CS degrees that can't even find work at McDonalds.

how do i short this and twitter

>Tech Bubble 2.0 is going to burst in a big way soon enough - when reality dawns on investors that many of these social media companies are losing money hand over fist.

So why don't you go short it then?

Having a CS degree and actually being able to produce production-ready code are two different things.

Okay, since SnapChat is mostly used by highschool kids to send dick picks to one another, does like an advertisement pop up over the image or something?

Cause what you said made it sound like the ads are limited to it's webpage and some affiliate sites nobody has every heard of and has nothing to do with the core product SnapChat offers.

dot-com crash 2.0 coming up, I think. Everyone is trying to be Google but without their near-monopoly on advertisement premiums or their expansive bot-net that sells personal information.

for over a year there have been articles about a lack of IPO's. I don't think there's a tech bubble - investors know how risky these lossing-money-but-valued-at-billions companies are. I expect SnapChat will pop initially but fizzle quickly thereafter.

I may do, but I'm also aware that it'll be a big pump-dump scheme ultimately so shorting immediately after IPO probably won't be wise. I'll wait a couple of months, probably after their first earnings report post-IPO.

I agree, since that's how every tech company IPO plays out, but that crazy volume at the start is wildly unpredictable. I don't know how to play an IPO of a basically worthless stock, I'm sure it'll be ambitiously offered at 100$/share, spike to $300 for 2 minutes drop to $60 and next year be valued at $2 or so but how to capitalize on this?

Don't even bother trying to trade it during the first few weeks at least - it'll be used and abused by HFTs in this time frame.

you sound retarded

brands can buy filters

there's the whole Discover section that media companies are using

mobile video advertising is the biggest growth industry in tech

snapchat hasn't been about dick pics for years now

do you people honestly need everything spoonfed to you?

i don't get it. i simply can't.

all these "startups" only hope to make money is to IPO or to get picked up by google. snapchat got some of its shit together and is making a profit (allegedly) via ads.

i don't use a smartphone. i don't see the point in these apps. sure, i'm old, but i block every advertising crap at the router.

fucking hell. there are already millions of clones of this shit.

>inb4 salty
not really. just can't get my head around the fact people believe this shit is worth anything

it's a fight for scale, eyeballs, and brand dollars

it's much harder to block ads in-App, but you're a late adopter who doesn't even have a smartphone.

snapchat will see explosive revenue growth as budgets move from $TWTR to $SNAP, but not enough to offset its ridiculous valuation, IMO.

Monkeys and Typewriters.

Snap actually has a geographic advantage because they're based in LA so they don't have to deal with the SV clusterfuck.

they can just hire out of UCLA / USC and bring in top Stanford / CAL / CMU / Caltech / MIT grads by paying more in backloaded options packages

dude shoulda cashed out when Facebook offered to buy it.

lmao he could probably cash out right now for ten times that amount

Does snapchat include videos?

Snapchat is awesome can't wait to dump $$ in it

PLS HELP, will I be able to buy SNAP stocks through Robinhood? I want to get in early, but don't want to get fucked by the shorters, I plan on holding for a long time. This company is fucking brilliant, I absolutely LOVE their evolution (and I love how Spiegel told Zuck to fuck himself years ago)

>and I love how Spiegel told Zuck to fuck himself years ago
Elaborate. Why would a guy worth "just" 1 billion go against a guy worth 50 billion? Also making enemies with billionaire tech CEOs seems like the dumbest thing one can do.

It's a great story, Zuck went to Snapchat when it was early and mostly teenagers, and offered him $3 BN to buy it. He said if you don't take this offer, we have a replica app ready to put out this week, and promised to destory Snapchat. Spiegel told him to get fucked, so Facebook released "Poke" and it flopped HARD. Now Snapchat keeps innovating their app every month or so with new features, and almost every one has been a hit. Spiegel is disrupting social media in a huge way and I think it's hilarious.

Try downloading it and using it before you speak on its function or demographic without any data.

>and promised to destory Snapchat.
What a fucking subhuman.

>when it was early and mostly teenagers
How early we talking here?
I meant scumbag.

I believe it was '13? It was right when Snap started getting huge. Facebook has had some success stealing their niche with Live Video, but Instagram Stories & Messenger Filters are not breaking in

Dear God no...

Holy shit this. Nothing drives me crazier then people who act like they know how to run a platform they've never used.
Recently Zuck has integrated Snapchat features into Messenger which he should've done in the first place.
>Now Snapchat keeps innovating their app every month or so with new features, and almost every one has been a hit. Spiegel is disrupting social media in a huge way and I think
I use Snapchat every day, there is nothing new or innovative aside from nonintrusive advertising and filters get the fuck out of here.

>What are stories.
>What are corporate stories
>What are filters
>What are corporate filters
>What are memories
>What are snap UC codes
>What are spectacles
None of this shit was in the original release and every release of these features has been seamless and a huge success. This is called disrupting the market

>when reality dawns on investors that many of these social media companies are losing money hand over fist

It's not exactly a big secret. Everyone knows it. And Snapchat just agreed to pay Google $2b for cloud services. No way they're making money any time soon.

But it's the advertising bubble that I'm waiting to burst.

More importantly:

Who fucking cares?
Who cares about any of this social media shit?

I'm serious, somebody explain it to me.

If you're not a business it serves no purpose to immerse yourself in this petty shit.

Oh hur durr I get to give away all my personal info all the time to make my life a work of art for marketing surveys

Why? I'll never understand how anything beyond Google got fuckhuge.

Facebook's stupid for personal use and I have no idea how advertisers succeed in getting anybody to go clicking fucking Facebook ads enough to catapult MZ into one of the richest people on the planet. Instagram and Snapchat seems shallow.

It's not even a "stop liking things I don't like". It's "I literally cannot comprehend how any of these markets were able to acquire any value at all". At least Google has established search engine dominance in the Western world.

I don't fucking care about the hottest stale meme on Facebook or seeing what you ate for breakfast. I REALLY don't care to catch up on the advertisements I already blocked the rest of the day.

because you arent thinking in the mind of anormie, which is the key of this IPO.

for my friends, they love using snap to advertise their life and show off.
the ads on snap are there right in your face while still being just out of notice. I'm guessing people view this shit all the time.

snapchat is insane for promoting products

you can direct your ads at an exact target audience with facebook. what other ad platform can do that ?

But who views the ads?
Who doesn't just have a blocker already screening out all that juicy targeted advertising and making it moot?

Don't pretend you can understand tech stocks guys. This is just a gamble.

can anyone here honestly say that they've actually purchased a product or service because of an ad on social media, let alone clicked on one?

The only exception is when I already visited that webpage earlier. Then it pops up everywhere in these targeted ads.

That's just because the companies that advertise on Facebook are the exact ones on the first page of a google search result anyways. It's redundant.

Read their SEC filing. They don't make money.

>We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability.

Direct quote.

>Class A common stock shall have no voting rights.

So they don't turn a profit, don't pay dividends and you cannot even vote as a shareholder. It's literally worthless. Man I'm gonna short the fuck out of this after the IPO.

People are narcissists and crave attention.

you're a cave troll who was never hugged by your parents, so obviously it makes no sense to you.

Smartphones are incredibly addictive. Most people who grew up with smartphones use them at every opportunity. Any time they have nothing in particular to do, they'll pull out their smartphone. Any time they're doing something they don't want to be doing, they'll take regular breaks to pull out their smartphone. Any time their smartphone buzzes, they'll interrupt what they're doing and pull it out. I stopped watching movies with my little sister - who is currently in film school and wants to be a director - because she would be focused on her smartphone the whole time. The new default behavior for a human is to be staring at a 5" screen.

Why? Basic habit-forming and reinforcement. Your phone buzzes, you interact with it, you get a quick little dopamine hit from the text message or email or social media update that you received. Repeat hundreds of times a year in every situation in your day-to-day life and not only will you be conditioned to look at your phone when it buzzes, but conditioning will have built up based on environmental and mental factors (on the bus? waiting for someone? bored by what you're doing?) and you'll start looking at your phone in those situations even if it's not buzzing at you. Eventually it fills up all your free time, but the buzzing doesn't stop so it starts encroaching on time you set aside for other activities as well.

With all this in mind, there are a whole bunch of "social media" companies battling it out to become the first app that you open on your phone when you look at it. Then they want to keep you in their app as long as possible so that they can gather data about your interests, show you advertisements, and make money. How do they get you to open their app first? Send you high-value notifications (eg. messages/nude pics from friends). How do they keep you in their app? Give you stuff to do that's always available, even after your notifications have been taken care of. How do they gather data on you? Track every single detail of every interaction you have with their app.

Facebook was the first company to pull this off, and people think Snap is on track to be the second.

>snapchat on the track to be second

Sadly not in this case. Im on the grounds to say snapchat is more on its way out the door like myspace but in app form. Instagram is copying everything snapchat tries to be creative on and snapchat isnt creative in the first place. Snapchat is throwing in a lot of mundane features into its app just to keep people interested. The whole social media warfare with these companies died a long time ago as facebook is the king and everyone else is just stragglers.

Ok so when does this actually happen?

Should I buy or not? And how many shares?

I did. Bought a badass christmas suit, I love it, all my friends love it, my mom loves it, I got laid because of it, and I won a couple ugly sweater contests.

Instagram stories are already at 150 million daily ysers

You being able to type a post that long in understandable English puts you into the top bracket of intelligence among modern internet users. Do not even try to understand what is going through the average person's head.

If no one noticed yet they are asking for 25 billion to start their IP, meaning the valuation will be 63 times earnings.

By selling people's info like any other tech company.

They're asking for 3 billion making it a 25 billion valuation

there will be a short bullrun in the beginning. try to time both the rise and fall

Those people never got past the theory they teach you in university.

Practical application of your CS degree is learned on your own or through an internship. Just getting the degree isn't a guarantee of knowledge.

anyone who knows how to evaluate a company will not even give snapchat two looks. they don't make anywhere near enough revenue

good. "tech" companies are cacner