Snap

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I did a larger-than-usual investment earlier this year in $SNAP on the public market. Then, I followed on and invested again recently… even though my original investment lost almost half its value.

Here’s why.

Snap is like early Facebook in a lot of ways… just not in the ways that everyone on Wall Street thinks. Both companies understand what’s next and how to execute on it. Facebook is still great at this (I own them too), but so is Evan and so is Snap.

When companies have huge financial resources, top talent, and strong leadership, they don’t need to have the best product at any given time. Their strength is more around executing on larger trends and evolving their product(s) to stay ahead of an always-changing market.

Facebook, clearly in hindsight, does this well. They are different today from when they IPOed. At that point, analysts were downgrading them for struggling on mobile in a world that was trending towards mobile. That’s right about when I invested, because if all they needed to do was improve mobile… no problem! (The rest is history, obv.)

Snap is exactly the same in that way. Sure, they have less users than Instagram stories. And they don’t give advertisers enough metrics. And Snapchat is hard to figure out.

None of those are dealbreakers. They can all be fixed, if Snap chooses to fix them.

So that’s why.

Snap is cheap right now. They could end up like Twitter, but it’s pretty clear that as a company they’re a lot more like Facebook. If I could go back and buy $FB at $14/share, well… that’s why I bought more Snap.


Plus, anecdotally…

I love the idea and execution behind Spectacles. Very promising kernel of something.

I also really like the new geo/map feature where you pinch the screen and see snaps on a map. During the recent flooding in Houston, Snap saw a huge surge because people were watching the flooding live(ish) just by tapping on that area of Texas. That’s powerful. Everything from live events to political protests can be experienced by pinching the Snapchat app.

Lastly, when influencers reach peak saturation and start degrading the experience on Facebook and Instagram, Snap (more mature at that point and with their different style of influencer) will take center stage.


Follow my journey from non-accredited to full time investor.