Here’s what Mark Zuckerberg and Facebook haven’t said in regards to the Cambridge Analytica data breach of 50 million users.
No one is saying Facebook was hacked, so why call it a breach? The Bergs — Mark and Sheryl Sandberg — sold that user information to Cambridge Analytica. This is the sneaky business model of all social media. Continue reading
Live by the sword, die by the sword.
Snapchat found this out this week when it ran an ad asking “would rather slap Rihanna or punch Chris Brown”. Continue reading
The millennial’s social media app Snapchat announced its “earnings” Tuesday after the bell. The company uses a ghost as a company icon, since many of its messages vanish after being viewed.
The mascot has a design similarity to another infamous corporate ID, the sock puppet used by Pets.com, which can be used as the icon for the 2000 Internet bubble busting. Continue reading
This year’s tech IPOs have had a spectacularly awful performance. Snapchat and Blue Apron just can’t get out of their own way.
Snap is down 60% from its 52 week high in early March a day after the first trade. Blue Apron is off 55% from its early July highs.
Snap has the distinction of being downgraded by Morgan Stanley, which underwrote the offering.
Both these stocks but especially Snap are suffering from the Twitter effect. The micro-blogging site came up with metrics other than revenue to show their early growth. The engagement numbers of monthly users and now daily users show how people use the service, but if you can’t bank engagement, Wall Street will let you know it’s not ok.
So Twitter is down 77% from its all-time high Nov. 2015, which may be the level Snap and Blue Apron do not wish to attain.
So how far do these stocks have to go before they get a buy-out offer from the Silicon Valley heavyweights? I’m sure Amazon may be looking at Blue Apron, while Google could see Snap as a relaunch of its failed Google+.
The template for this is Yahoo’s purchase of Tumblr or Facebook buying Instagram and basically making it the Snap for the masses.
So it’s the falling knife on these stocks, but there could be a big reward down the road.