(ANALYSIS) Oh Snap! Is Snap’s Volatility Making Investors Wary?
Snap recently released Q2 earnings, causing investors to panic, and continuing a pretty volatile stretch since their 2017 IPO. Debuting at $17 on March 2, 2017, the stock quickly rose to a high of $28.17 on March 6 of last year.
However, concerns over user growth, profitability, average revenue per user (not to mention Kylie Jenner’s $1.3B blow), have fueled investor skepticism, pushing Snap shares all the way down to $11.73, as of Aug. 21.
Q2 Earnings Highlights
- Snap reported a sequential decline in daily active users (or DAU’s) for the first time ever—a big warning sign.
- Snap’s DAU’s fell 1.5% from 191 million in Q1 to 188 million.
- The DAU’s, however, rose 8% YoY (year-over-year) from 173 million in Q2 2017.
- This decline in user growth was attributed to the disruption caused by Snap’s platform redesign—the same thing that set off Jenner’s tweet.
Snap reported revenue of $262.3 million with a net loss of -$0.14 per share. This was higher compared to analyst revenue estimates of $249.8 million and earnings estimates of -$0.17.
Despite the revenue jump, Snap posted a loss of $353 million in Q2 and continues to burn through cash. Snap has raised $250 million from Saudi Prince Al-Waleed Talal for a 2.3% stake in the company.
Snap’s stock, however, rose 11% post earnings (before eventually falling again), due to revenue growth of 44% YoY, earnings beat and reduced losses.
Can Snap Monetize User Base?
One of the key challenges for Snap remains the monetization of its user base. North American users continue to drive user growth for Snap with over 100 million monthly active users.
To turn around its current trend, Snap will need to focus on improving average revenue per user over the next few quarters. Although Snap’s average revenue per user (or ARPU) rose 33% YoY to $1.4, it is still way below the ARPU for Twitter ($7.5) and Facebook ($20).
Snap’s ARPU in Rest of the World region rose 65% to $0.96 during Q2. Although the purchasing power in emerging countries continue to remain low, they provide a platform for a massive increase in DAU’s.
How Do Analysts View Snap?
Snap’s revenue is estimated to grow by 41% in 2018, 39% in 2019 and 40% in 2020. Its earnings per share (EPS) is estimated to improve 8.2% in 2018 and 25% in 2019.
Snap’s EPS is also estimated to grow at a compound annual growth rate of 27.8% over the next five years. Despite this massive growth in revenue and earnings, analysts expect Snap to post an operating loss of 72% in 2018, 43% in 2019 and 21% in 2020.
Sure, there are many unprofitable tech companies that continue to burn cash as investors remain optimistic about growth prospects and the total available market. The major problem with Snap is it competes with established giants such as Twitter and Facebook.
There are 36 analysts covering Snap. 30.5% (or 11 analysts) recommend a “buy” while 50% recommend “hold” and 19% recommend a “sell”. The average 12-month target price for Snap is $11.83 which is 6% below its current price of $12.57.
There are too many variables for analysts, making investors cautious to enter the stock at current levels. Snap needs to increase its ARPU, advertising revenue and user base significantly over the next few quarters to be viewed as a safe bet.
How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.
(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
There’s the 1031 exchange, of course, which I’ve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.
But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
So I thought I’d share it with you guys. 💎
You can check it out here.
Let me know what you think. 😎
PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
How I run a $300M+ business from the beach…(and how you can TOO!)
Yes, you read that right.
If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.
Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲
This is my office for the day…
I am actually running our business from the beach, typing this from here.
It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.
(And the team will continue to crush it while I’m asleep. That’s the 🗝)
So how did we get here?
We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳
As a result, we shut down our main office and set EVERYTHING up to run remotely…
SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)
Here’s what we were able to do since then:
- Gained 6M+ followers across all platforms 📈
- Add 1500+ new apartments to the portfolio 🤑
- Grow to $300M in real estate 🚀
- 105% investor returns 🎉
- 700K+ community members 🤝
And here’s the best part…
Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.
This means we get 3x the productivity of a similar company. 🔥
Let me repeat that…3x PRODUCTIVITY vs. our competitors.
Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.
There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.
All the while giving YOU GUYS wealth hacks and daily content. 🔥
OK, so how can you do it?!
Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.
MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝
(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)
One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)
Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.
I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎
From what software to use, how to build a team, how to keep.
In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…
Let’s get to work. 🙌
PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥
EXCLUSIVE Q&A: This 26-Year Old Made $100K From Her IG In 90 Days. Here’s How She Did It 👀
Yes, it’s a pandemic. Yes, the economy is down. Yet, some entrepreneurs have found opportunity in the “new normal” (whatever that means).
In the public markets, FAANGs are booming: Amazon and Netflix are up dramatically, fueled by the need for home entertainment…and shopping.
One of them is Ariel Adams, a 26-year-old South Virginia-based realtor. In April, at the height of the lockdown, she had exactly 1000 followers on Instagram.
Fast forward to today, she’s attracted over 100K followers, has made $100K in online sales (again, during the pandemic), and is now showing others how to do the same.
We sat down with Ariel to discuss how she made $100K in 90 days, what she sold, how she got her first customer, and how you can, too.
Let’s get right to it. You work in real estate but were able to make $100,000 from your IG in three months. Let’s start with the product. What did you sell?
Yes, that’s correct. I was shocked myself! My sales came from my digital products, mainly my e-book From Instagram to Instant Money. My e-book dives into how you can optimize your Instagram profile to grow a following and sell your own product. I talk to the Instagram algorithm and how to beat it to ultimately monetize the platform. My other digital product is my course How to $ave Like the Wealthy. As a realtor, I would receive a lot of questions in regards to saving up for a down payment on a home. I decided to create a video outlining the best way to save money and accumulate wealth. Both of those products got me to six figures!
How did you secure your first orders? Who were your buyers?
My sales came from my following. I would collaborate with other brands with significant followings and post my product on their page. This drew in a lot of traffic to my products and also pushed me to 100k followers on Instagram. My buyers were typically people looking to earn passive income by selling a product or service through Instagram.
Was the objective of your advertising to gain followers and sell later? Or did that just happen as a byproduct of people buying your courses?
I never was trying to gain followers, I was always trying to sell. I think people would see my ad, go to my page, and then turn into a follower because I always provide valuable content on my page. My Instagram consists of personal finance infographics, real estate tips, and inspirational quotes. I think people naturally gravitated toward that and I was able to retain and gain followers.
How do you consistently market it? Is this a model anyone can use?
I try to set up placements on these bigger Instagram pages 2-3 times a week. I aim for business pages, women-owned business pages, and black business pages. My product resonates well with entrepreneurs looking to scale their business through IG. It is absolutely a model anyone can use. I recommend following the other steps I speak to in my e-book. This will ensure the most success.
Most aren’t aware that partnerships can literally boost your business. How did you come up with the idea of collaboration and what made you target those pages exactly?
Being savvy to Instagram, I was always aware of Influencer Marketing. A lot of people think that’s just girls posting brands to their million or so followers, but it includes placements with ANY brand that has a substantial following. I knew this was a key to success. Collaboration on bigger platforms would be the most helpful for my brand. I targeted people I thought would be interested in my product; women CEOs, entrepreneurs, e-commerce enthusiasts, etc. I made sure to stay within that niche.
How did you come up with this idea?
I was inspired by other online entrepreneurs. I saw them making thousands online and I thought to myself, “Hey, I can do that.” So I decided to do it. I asked myself, “What am I skilled in? What can I teach people?” From my previous life managing artists in the music industry, I became an expert in Instagram. Combining what I studied at the University of Miami (Business) and my knowledge of Instagram, that’s what sparked my e-book on the subject.
What’s the number one advice you’d give someone who’s looking to make money for themselves but isn’t sure where to start?
My advice would be to write down what it is you’re good at. Brainstorm what skills you have. Maybe you have a passion for food? Good, create and sell a cookbook. Maybe you’re good at writing? You can become a freelance resume writer. We all have skills we can capitalize on. And if you need to learn how to market yourself, then Google is your best friend. Read, read, read. Self-educate and you will be on your way, and of course download my e-book to learn how to sell through Instagram!
How to Invest In Real Estate Through Your IRA
How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀
How I run a $300M+ business from the beach…(and how you can TOO!)
How To Launch Your Business In 30 Days Or Less
EXCLUSIVE: This Entrepreneur Built A $7B Business Without Outside Funding. Here’s How He Did It
How Mark Cuban Invested $640k In A Company That Started…As A Prank
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