Oh SNAP

04/03/17 3:26PM

Oh SNAP

SNAP:xnas listed the day before to much fanfare.

They are the parent of popular app Snapchat.

Snapchat is an app that allows users to chat with one another, while ensuring that whatever is communicated is deleted the moment it has been read or seen. Even trying to screenshot ensures the other side is notified that this has been done. Think of it as a Whatsapp, WeChat or Line messenger primary function where all messages are deleted once they have been read.

It also has a Stories function which allows posting of anything that stay in the feed for a mere 24hrs, before being deleted.

Last night its stock price surged more than 10% for the second consecutive day, closing at $27.

I don't get it at all.

How is that appealing? Yet it seems like the millennials have been bitten by the Snap bug. There are a lot of young Snap users. Yet it feels as though a user of the app would be someone who had something to hide or secrets to tell. I dunno.

The company is not making any money yet.

Snapchat has nothing outstanding to speak of.

It's seems as though competitors are copying it's technology wholesale. See Instagram's recent release of Stories.

There does not seem to be any revenue or advertising opportunities. 

Millennials are only using it because it is currently hip.

Perhaps I shall await the chance to short the stock.