On October 27, we warned you about three ticking time bombs lurking inside social media darling, Snap’s (SNAP) business.
Little did we know that all three would detonate so quickly!
On November 7, Snap reported dismal quarterly results, which sent the shares spiraling downward nearly 20% in a single day.
Even the company’s loyal underwriter threw in the towel.
After publishing a glowing post-IPO buy report in March, Morgan Stanley analyst Brian Nowak downgraded the stock to sell.
He lowered his price target to $11, too. That’s a far cry from the $28 target he initially slapped on the stock.
“Eight months after Snapchat went public, the company is a disaster,” says Bloomberg’s Shira Ovide.
Newsflash: It’s about to get even worse!
Why? As I told CNBC Closing Bell anchor, Kelly Evans, in June, “Snap’s facing a new innovator’s dilemma. Anything they can do, Facebook can do better and bigger. They’ve done it. And they’re going to continue to do it because there’s no patent protection.”
CEO Evan Spiegel is just now coming face-to-face with this reality.
But his epic response promises to be an epic failure.
The Equifax hack should deeply scare you. Heck, it concerns me enough that I took immediate action. I’m strongly recommending that you do the same. Read more »
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Monsanto is in the headlines again because a key ingredient in its Roundup weed killer, glyphosate, is now officially “known to cause cancer.” Here are a few other perverse inventions the company has engineered. Read more »
Walmart has partnered with Uber to expand its grocery delivery service business. It’s a classic example of truth being stranger than fiction. Bespoke Investment Group isn’t impressed. It listed Walmart on its “Death by Amazon” Index. Let’s see what my top two analysts think, and then I’ll render a decision at the end. Read more »
A 22-year-old Newsweek article just resurrected itself, and it’s now going viral. It contains criticism of the internet that has proven eerily accurate. But it also raises the question… Is the internet good or evil? Read more »