Finally, after years of building-up its young-user base, the Pandora deal proves what all us long-time, long-term Snap investors have long known: That Wall Street analysts don’t understand Snapchat; that Snapchat is not competing with Instagram- Instagram is competing with Snapchat; that Snapchat doesn’t have to be profitable to be valuable; that Snapchat’s value is in its daily active users; that Snapchat does not need more daily active users than Instagram any more than Microsoft needs more Cloud users than Amazon in order to be profitable, or any more than Intel needs more chip clients than NVIDIA, or any more than the Yankees need more fans than the Red Sox in order to be profitable. Snapchat only needs to succeed and be valuable to its advertising and service provider clients and to its own content and service initiatives. The Snapchat-Pandora deal proves that access to millions of young users will be valuable to companies- and they will pay Snapchat to get that. This is all that matters. And through deals with Pandora and Amazon that are already happening, and many others to come that help Snap monetize the Snapchat user base, the stock of Snap … will soon crackle and pop!
With all the accounts being proved fake on Facebook, Instagram, and Twitter, it seems that Snapchat’s “real” user-growth rate and numbers may be much more in-line with these “fake-account” social media companies’ than has been thought.
The only thing that can stop Snap now is a trade war.