SNAP is expected to start trading March 2nd. Sentiment appears to be fairly mixed heading into the IPO according to reported investor feedback from SNAP's roadshows. SNAP's sharp advertising revenue growth over the LTM is feeding the longer-term monetization story. However, its recently waning user growth is casting doubt on its staying power (FB), and whether it will be able to grow past its elevated cost structure. Further, the absence of any voting rights against its optically-lofty IPO valuation is adding an extra element of caution to the story.
We're going to present both sides of the debate, digging into SNAP's fundamental prospects vs. prevailing street sentiment. Further, we will attempt to lay out the progression of the story across a range of potential scenarios, and how we're looking to play SNAP over the NTM.
Call Details will be posted Tuesday morning.