Today is Snapchat’s 3rd quarter earning report . I have held snapchat since June of 2017 ! My thought process when I bought the stock. I bought it as a short term speculative play and got caught in its downward spiral ! I shared my lessons learned from this trade .
I bought the stock as a short term play – however by following the stock I came to appreciate the company’s ability to innovate and release new/unique features . From personal experience I find a lot of young people use Snapchat compared to FB. I believe these are the two core strength of the company.
The things I don’t like about the company – the leadership and the decreasing growth rate . I find the CEO to be offensive and in my view he lacks the vision that someone like Mark Z had at his age. This is just a personal perception . I also think the market is going to punish the stock for the decreasing growth rate.
Some of the analysts I follow and respect has highlighted that the street’s expectation is high and SNAP may miss the target for revenue and user growth. I find when this happens there is usually a pull back. I don’t want to hold my stocks through another pull back. As such I sold my stock today at a 16% loss ! This is my only losing trade for the year !
I will watch the stock today evening after the earnings report and tomorrow morning. If there is a pull back I may go back into it for a short term trade !