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Recently on The Macro Show, Communications analyst Andrew Freedman outlined what is the next move for Snapchat (SNAP), as they struggle to grow their business.
“From a valuation standpoint this thing doesn’t make any money,” says Freedman. “It’s a structurally unprofitable business as it stands today, and they haven’t been able to scale or grow their share of advertising budget in a meaningful way. Even looking back on a 2 year basis there still is a lot of competitive risks coming from TikTok.”
“With the stock down here after getting clobbered last quarter, any whiff of ‘less worse’ or a positive acceleration in growth rate, could be a set up for a possible trade on the long side. I think it’s just a matter of if you want to thread the needle or not on a couple months versus what the broader trend is.”
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