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Holy smokers guys the falling knife that is snapchat has just hit an all-time low ever in the stocks history guys also nvidia stock is also crashing we are look at both of their results and see what the heck is going on here so first off let’s look at snapchat here so as of taking the screenshot after hours of stock was around eleven dollars and 42 cents down
Around a seven teen percent here guys in video was also down over six percent there 154 and will touch on their earnings toward the end here if we look at snapchat here the lowest it has ever been that up until this time was eleven dollars and ninety cents and now we’re at about $11.50 so tomorrow should be a new all-time low for the falling knife that is snapchat
Guys so let’s really look at these results and see if these are really as bad as everything’s going as far as the where the stock price is going are things really as bad as it seems let’s look at this here guys so first off this is all has to do with the analysts and beating analyst numbers right so adjust the eps loss of 1610 first snapchat versus 14 cents were
Expected there so they missed their revenue came in 181 million versus 186 million were expected by analysts that’s a mess their daily active users came in at 173 million versus 175 million were expected by analysts that was a myth an average revenue per user came in $1 o 5 vs. $1 o 7 and that was a myth guys so they missed completely across the board against what
Analysts were expected and you miss everything across the board against what analysts have for you and you’re already a hated stock as it is that’s like doomsday for you for your stock in the short term you know i’ve seen this time and time again guys where haiti companies like a snapchat here that’s already heated by wall street comes in and just misses everything
That analysts were expecting and that’s just bad bad news for a stock guys i’ve seen it time and time again in my 9 years in the stock market let’s really look at these results and today aren’t these really as bad as they may seem right so here’s a from snapchat side here so quarterly average daily active user and that’s people logging on every single day not like
One month like some of these other platforms like to use which who the f care is about if somebody logs in once a month i care about people that are there every single day right so q2 2016 this same quarter right they had 143 million daily active users now they have a hundred in 73 million daily active users guys think about that for a second in one year one year
Exactly they’ve managed to get 30 million more daily active users in my life i’ve lived in nevada where i live now i’ve lived in arizona that’s where i grew up i lived in charlotte north carolina so north carolina where i lived some time if you add up all the people who live in north carolina all the people that live in arizona and every single person who lives
Here in nevada that’s still not even close to how many people had been added by snapchat hitting literally the past year guys and here’s the best part about that here’s the best part in north america they’ve gotten 14 million more daily active users a year over year and in europe they’ve got 11 million new daily active users year over year so 25 of those 30 million
New daily active users have come from the best markets in the entire world as far as ad rates go in as far as the size of it nowhere out there is the opportunity as big as it is in north america if you’re talking about ad rates for the size of the population nowhere nowhere and then the second best place is europe because of how big europe is in the type of ad reach
You can get in those markets so i would say that’s a really freakin good sign i don’t care what anybody else says 30 million new daily active users in one year is ridiculous and especially when it’s 25 million of those or from north america where ad rates are ridiculous and where it’s from europe i mean it’s one thing if it was that you know some country where ad
Rates are super low and you’re getting $1 per you know thousand clicks or whatever versus you know five or ten dollars in north america or europe or something like that guys let’s look at these next numbers here so now we’re looking at quarterly revenue and we see here they did about 72 million dollars in the same quarter last year now they have up to one hundred
And eighty two million dollars guys so that’s well over 100 that’s somewhere around 150 percent increase in revenue so we see revenue is obviously exploding with this with this company i mean daily active users it’s nice to be up 30 million but then when when revenues starting to follow that’s when it gets real impressive now if we look at this this is quarterly
Average revenue per user so our boo as they call it so this time last year they were doing 50 cents in q2 2016 per daily active user or average revenues per user excuse me now they’re up to $1 o 5 and that’s on a global basis the rest of the world has come a long way they were doing one cent per average revenue per user last year in the same quarter for rest of
The world now they’re doing 29 cents so they’ve come a long long way now let’s look at cost of revenue what i like to look at is hosting cost per daily active user this time last year was around 55 cents now it is over 61 cents so it has gone up yes but at the same time look it as a percent with that a 510 percent move as far as the the the hosting cost that
Snapchats paying per daily active users but look at how much revenue is going up revenue is going up over a hundred percent you know 150 percent right now so i’ll take a 5 percent or 10 percent loss as far as you know what we’re spending per user versus what’s coming through the door guys so when i look at snapchat here my feeling on snapchat is just i’m going
To start probably having sure i say there’s a high high probability this will be a new stock at it probably probably keyword is probably to the september edition of for stocks i’m buying you know now we’re talking about 11 dollars a share i said i would absolutely a hundred percent buy-in if it ever touched anything in the 9 so 999 i would 100% buy right now i’m
Feeling very strongly like i’ll start buying in even if it’s in 11 s or 10 even before it hits the nines just because i don’t want to miss the opportunity in this one it hated right now i love being an a hated company and when you look at the actual results when you look at what’s going on on the underlying business the underlying business does not like 30 million
New daily active users long on every single day tell me that’s not worth a lot of money tell me that’s not worth a lot of money 173 million daily active users and the majority of those in north america in europe do you know what kind of money that’s worth oh my gosh is a very few platforms websites in the world outside of facebook that even have numbers even close
To comparable to that guy’s so really like in snapchat you know i’m glad i have not gotten in yet i’ve told you guys this one’s a following nice and i’m just waiting on it and i’ve been just waiting and now i think i’m just about ready to pounce guys so i’ll keep you updated on that now let’s go ahead and look at these nvidia earnings here so they went down here
Graphic chip maker nvidia sawed stock for more than seven percent on thursday after report is stronger than expected earnings for the second quarter 2018 fiscal year which ended july 34 31 eps excluding certain items came in a dollar oh one in earnings per share versus 70 cents were expected by analysts revenue came in at two point two three billion versus one
Point nine six billion so they beat both on both of those in terms of guidance the company said it expects to generate two point three five billion dollars in revenue plus or minus two percent in the third quarter of 2018 fiscal year analysts were expecting around two point one four billion dollars so nvidia here it’s like how does this stop you know tumbo seven
Percent when they beat on everything when you beat on guidance and you’ve been on revenue and you betta eps like like what else is there to beat honor those those are all that’s the holy grail you know you revenue you beat on that eps you beat on that in guidance should be on that generally speaking your stock will rise sometimes if it’s one of those things where
You know you beat on revenue feed on eps but your guidance is weak then maybe your stock will fall but it’s very rare a stock falls when everything is phenomenal but then we go ahead and we look at this guy’s nvidia is a stock that’s up a hundred and eighty one percent in the past twelve months yes you heard me right 181 percent in the last 12 months guys that
Is a ridiculous stock move and sometimes when you have a stock move that dramatic sometimes it’s just you can’t there’s no number perfect enough that you could report that would justify how much your stock has gone up and videos are stock that everybody’s betting on the future and it’s such a love stock by wall street right now like everybody just love this stock
This is just a loverboy stock right now its exact opposite of snapchat you know snapchat so hated by wall street and video right now is you know the the darling that could do no wrong now who knows that twelve months from now wall street could change his mind and also they can be um you know the next snapchat or something but right now everyone loves the stock but
Still when you’re up 181 percent in the past year sometimes it just doesn’t matter what you report your stocks probably gonna go down just because your your price to absolute perfection when you’ve got 181 percent gain their stocks like everything needs to be freaking so amazingly perfect so ridiculously beating everybody’s numbers that it’s almost unrealistic
At a certain point guys so that’s what we got going on there snapchat nvidia let me know if you guys are invested in either one of those i would love to hear from you guys in that comment section let me know what you guys thought about the earnings in general are you planning on buying either one of these stocks or or do you not believe in those kinds of things
Obviously snapchat a lot of people don’t believe in it a lot of people haven’t even really looked into it and i’m talking about like spent days or weeks really looking into it reading annual or fourth a lot of people just are lazy and they just want to throw a you know an idea oh i hate that because i don’t understand it because it’s better now over on or whatever
Like a lot of people are like that but i would love to know from you guys that have really spent real time in it like hard work time like reading ten kings and reading ten q’s on snapchat like what’s your opinion on the company i love to hear that in that comment section if you came across this channel you may want to subscribe we talk personal finance my channel
We talk entrepreneurship i’m an actual business owner it was so a way so many business tips we talk stock market investing more than anything check out my stock market strategy book it is linked in that description thank you for watching guys and have a great day
Transcribed from video
Snapchat Stock Crash By Financial Education