On 2nd February 2017, Thursday Snapchat Inc. has issued its IPO prospectus so that investors can learn about the organization. However, for financial analysts, it is high time to scrutinize ins and outs of the technology company. And some of them are saying Snapchat’s financial performance is substandard.
James Gellert’s Opinion on Snap
There are some different analysts love to read financial data between the lines. Such an analyst is James Gellert. He analyses companies from a different perspective. The analyst does not do usual Wall Street job of stock selling, purchasing, and holding. Rather, as Business Insider reported, “he rates more than 60000 public and private companies to see how likely they are to default their financial commitments, possibly even to the point of bankruptcy”. After doing his research Gellert found that Snap is neither risky nor safe. According to Business Insider, he remarked that Snapchat’s “core health is poor very poor”.
The prominent analyst further wrote, the technology company “demonstrates weakness in earnings performance, operating profitability, net profitability and capital structure efficiency relative to the global industry set”. Gellert came to this conclusion analyzing the financial activities of Snap Inc. By the same token, critiques also grilled Snapchat as a medium of “Sexting”. Nonetheless, while a veteran magazine published the opinion of Snap founder and CEO Evan Spiegel about Sexting where he asserted, “no, listen. I am 21 years old. I don’t need to sext. I just go have it”.
As a matter of fact, apart from the criticism, Snapchat has an eye- popping number of users. Moreover, 158 million users daily create 2.5 billion of its temporary photos and videos. All in all, Wall Street investment expert are opining that Snap started 2017 marvelously. Additionally, it is really going public fast.