patrick.net

snap can join tsla and bitcoin in the race to zero.

Patrick says

I am a bit confused by the graph of Snapchat's revenue and losses:



They have about 3,000 employees, so that's a loss of a million dollars per employee in one year.

How is that even possible?

https://finance.yahoo.com/quote/SNAP?p=SNAP

I could start a company with an initial investment of a billion dollars. We will burn a million dollars cash at a local field once every day. We will charge admission for people to watch us burn that money. And my business model would still be better than Snapchat.

mell says

snap can join tsla and bitcoin in the race to zero.

"You're bitter because you don't understand the technology"

Satoshi_Nakamoto says

mell says

snap can join tsla and bitcoin in the race to zero.

"You're bitter because you don't understand the technology"

Lol.

www.youtube.com/embed/BzAdXyPYKQo

They even mention Snapchat in that one.

Stock based compensation. If you have worked for snap since 2013 or so, you will be riding that 100k sign on to 10m. That's why they are lottery tickets. Snap is Powerball stock comp

Shareholders pay for it so it's non cash. So if you invest in snap, ceo and gang will dilute your ownership like a mxfx. Look at the cash flow.

SFace says

Stock based compensation. If you have worked for snap since 2013 or so, you will be riding that 100k sign on to 10m.

How can that be, they only had their IPO a year ago?

The largest part is "Selling General and Administrative" which may be mostly the expense for granting stock to employees.

Sniper says

SFace says

Stock based compensation. If you have worked for snap since 2013 or so, you will be riding that 100k sign on to 10m.

How can that be, they only had their IPO a year ago?

Snap has always been a "Stock" company, they recruit from day one dangling massive tock options in lieu of cash Over those pre ipo years, you get diluted over and over. It's a winning ticket.

The ipo just turn the stock private value and illiquid into public valuation and liquid, to the extent lock up ends. With a liquidity event, those expense are certain.

You'll see the same thing from Dropbox.

It's all the same, it's called skimming, albeit creatively done so. Probably our worse blatant, out in the open offenders currently are the U.S. health care industry being as the insurance and pharma lobbyists are so big. When money is being stuff into back pockets you know nefarious activity is not far behind.

I can only guess snapchat finally got the go ahead to borrow a bigger pile and they put it into infrastructure, development, or marketing, or lol, it's because they went public in 2017. Once the company is public, well then it's time to rob it, talk big about, advertise how great it's going to be because of x, x, z, etc., and/or dilute the stock shares. It sounds like they are becoming more content based, and I really have no idea what snapchat could do for me since I don't use it. I think we can all agree that not all these social network platforms are going to make it in the long run, maybe because of dependence on add revenue.
https://techcrunch.com/2017/11/13/time-to-snap-into-action/

Patrick says

The largest part is "Selling General and Administrative" which may be mostly the expense for granting stock to employees.

Or maybe the proverbial "Hookers and Blow?"

https://finance.yahoo.com/news/snap-stock-is-plunging-and-issues-are-intensifying-analyst-says-112315619.html

Snap stock is plunging and 'issues are intensifying,' analyst says