We first mentioned Snap the glasses company before the IPO. We were steadfast in our position, the Snap fad is over and over time this IPO will be a dud.
We asked hundreds of teens if they were using the app, if they were asking others to join them in using the app and finally if the app still offered an engaging entertaining time. The resounding majority (about 7 in 10) answered no to all 3. Remarkable Wall Street didn’t see this coming.
We had an initial short target of $8 then we moved that down to $5. (it touched $4.99 in Dec and has since recovered to $6.25+-). Today the shares are taking another hit as the CFO Tim Stone resigned after only 8 months on the job. He left behind a $20M sign up bonus. Stone’s departure follows a string of other top-level exits in the past 2 years – 22 in all.
Ongoing DOJ and SEC inquiries, mounting lawsuits and users heading for the exits over to Instagram – game over for Snap.
Cover and close your position and bank your profits. ?
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