SNAP

 Thesis: 

• The co. beat in 3Q25 and guided higher for 1Q26. 
• Price/sales at 2x
• Key catalyst is the co is charging for storage: 
• Chart looks at the Crossing point of the 80-15 day SMA
• Personal note: Jim Lazaridis' daughter (16) is still using snap with her friends, planning to pay for the storage! 

Risks:

• The co has not figured out how to make $ from its users like FB. 
• Financial metrics is horrible
• Not a usual value/compounding investment
• Turn around story
• New Management?
• New Strategy?
• potential takeout candidate
• Entry $7.8, short term support $7.2 (50% loss exit) and Long Term support of 6.9 (100% loss exit)
• Potential add: after the reversal of current slide from 9 to 7.6 (5-6 days?)

Free Limit: You get 5GB of free storage for saved Memories.

• Over the Limit: If you exceed 5GB, you'll see alerts and get a year of temporary storage for excess memories.
• Paid Options:
  • Standard Plan: Around 100GB for about $1.99/month.
  • Snapchat+: Includes 250GB for the subscription fee (around $3.99/month).
  • Snapchat Platinum: Offers 5TB for a higher fee (around $14.99-$15.99/month). 

The company is the cheapest social media stock. Here is a snap summery of the 3Q25:

Beat on revenue and EPS:Snap reported revenue of $1.51 billion and a loss of $0.06 per share, beating analyst estimates of $1.49 billion in revenue and a loss of $0.12 per share.

Daily active users surpass expectations:The company's key user growth metric, daily active users (DAUs), increased 8% year-over-year to 477 million, exceeding the consensus estimate of 476.31 million. Positive Q4 guidance issued:Snap provided an optimistic outlook for the fourth quarter, projecting revenue between $1.68 billion and $1.71 billion and an adjusted EBITDA of $280 million to $310 million, both surpassing analyst estimates.