Slack has impressive growth numbers and some real competitive advantages, but it also faces significant competition as it expands the breadth of its offerings.
GAAP earnings don’t just mislead investors about the amount of growth in 2018, they also present a misleading picture of the breadth of earnings growth.
With no mechanism to hold CEO Evan Spiegel accountable for his missteps, Snap’s investors can only watch the company’s ongoing struggles with frustration.
Many of the issues that plagued Snap at IPO have only gotten worse and as a result, Snap Inc., and its micro-bubble, is already in our Focus List – Short Model Portfolio, and once again back in the Danger Zone.
The market has failed to recognize the resilience and strength of this business, and the stock’s valuation implies a permanent decline in profits based on a misunderstanding of the trajectory of the business.
This company has an unprecedented history of growth and profitability, along with a well-deserved reputation as one of the most advanced and innovative companies in the world.
Learn more on Wednesday, November 1 at 3:30 ET when New Constructs CEO, David Trainer, joins CNBC’s Closing Bell to discuss Facebook’s business and the upside in its stock.
This Danger Zone pick has seen its profitability decline as new competition has entered the scene. As the market commoditized, this firm’s negative margins and limited service offering undermined its ability to compete.
We think the ship has sailed on this business, but the stock is still pricing in huge improvements in profitability and market share. Pandora Media (P) is in the Danger Zone this week.
When SNAP first filed for IPO, there was a lot of hype and the original $25 billion valuation quickly fell to $22.5 billion. Is the market so hungry for another tech IPO that it will overlook the dismal fundamentals and nosebleed valuation of SNAP?
Today’s news that Alphabet, Apple, and Disney are unlikely to bid for Twitter should come as no surprise. We think these companies (and many investors) are doing the same work we have done and simply cannot stomach paying anywhere close to Twitter’s current price.