A 2018 discussion of Snapchat's business troubles, advertising struggles, and what's next for the company. Speakers debate whether augmented reality and the company's valuation can turn things around.
People don't want advertisements in the middle of their text messages. Is there a second act? It's gonna have to come through an acquisition. Much like Facebook acquired Instagram or Google acquired YouTube, etc.
What's the cool?
Well, I mean, there's augmented reality, there's mobile, there's, you know, artificial intelligence. There are things out there. The spectacles, it's a play, but I think it's more of a novelty right now. It's not going to drive mainstream revenue.
If Snap is able to come out with something that's a little bit more exciting and allows you to play with augmented real. That do it does that.
That's an experimental marketing budget. Most traditional Fortune 500 marketers are still wiggling the way I broadcast television to go into digital. For them to go to digital to augment a reality. We're talking five, 10 years out. There's no ROI. There's a proven model there. And the programmatic model of being able to target Joe's Pizza, everyone within a mile of that, that Facebook and Google have, that's really where the magic is. And the magic is also in that all the brand marketers use Google. All the brand marketers now use Facebook. I don't think anybody at this table, from just asking anybody here, uses Snap.
Where do you think this company should be valued?
Look, I think at this price, it's definitely worth getting your toe in if you're not there. And I think historically you've seen on most of the Large hot tech IPOs similar day one performance on earnings, and most have done very well.
What's your price target for the shares?
I think from here we go back to the mid-20s. Pretty soon.
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