3.29.2017 SNAP Short Opportunity?

Here are some of the most “promising” tech business models after the IPO. These VCs pour money into startups and drive up valuations then exit at the IPO. Not saying that these tech business models are bad and have no long term future, but i think valuations tend to get out of control.

Ideally, i would like to see a run/parabolic move to the upside in SNAP in order to set up for a nice swing/position short opportunity.

Mark Zuckerberg made an offer at $3 billion and so i don’t think this would go that low. Unless sales start to ramp up aggressively, i think this security will go lower.

  •  SNAP
    • Peak = ~ 30 Billion Market Cap
    • Sales = ~400 Million
    • Income =~ – 500Million
  • YELP
    • 2014 Peak Market Cap = ($90/share) x (72 Million Shares) = ~6.5 Billion
    • 2014 Sales = ~377 Million
    • 2016 Market Cap = ~2.6 Billion
    • 2016 Sales = ~713 Million
    • 3/29/2017 Stock Price = $32.78 (2014 peak at $90)
  • FEYE
    • 2014 Peak Market Cap = ($85/share) x (142 Million Shares) = ~12.1 Billion
    • 2014 Sales = ~425 Million
    • 2016 Market Cap = ~2.25 Billion
    • 2016 Sales = ~714 Million
    • 3/29/2017 Stock Price = $12.76 (2014 peak at $85)
  • FIT
    • 2015 Peak Market Cap = ($47/share) x ( 175 Million Shares) = ~8 Billion
    • 2015 Sales = ~1.8 Billion
    • 2016 Market Cap = ~1.3 Billion
    • 2016 Sales = ~2.1 Billion
    • 3/29/2017 Stock Price = $5.87 (2015 peak at $47)
  • GRPN
    • 2012 Peak Market Cap = ($27/share) x ( 650 Million Shares) = ~17.6 Billion
    • 2012 Sales = ~2.33 Billion
    • 2016 Market Cap = ~2.2 Billion
    • 2016 Sales = ~3.14 Billion
    • 3/29/2017 Stock Price = $3.93 (2012 peak at $27)
  • GPRO
    • 2015 Peak Market Cap = ($90/share) x ( 135 Million Shares) = ~12.15 Billion
    • 2015 Sales = ~1.62 Billion
    • 2016 Market Cap = ~1.25 Billion
    • 2016 Sales = ~1.19 Billion
    • 3/29/2017 Stock Price = $8.73 (2012 peak at $90)