Snapchat ( SNAP ) Sold ! Ahead of the Nov 7th, 2017 Q3 Earnings !

Snapchat ( SNAP ) Sold ! Ahead of the Nov 7th, 2017 Q3 Earnings !

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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 !

 

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