Stocks – Why Snap lost $2.2 Billion – Rich tv live #62
What’s up you ready you ready ready oh my guinness so let’s just start with the big elephant in the room shall we let’s just start with that let’s just just get it out of the way what up let’s just get it out of the way shall we let’s get to the big elephant out of the room good disaster that is snapped never have i been more wrong oh my goodness never have i
Been more wrong about a stock then snap so i come out and say that i think that they’re going to beat their azimuth that they’re going to do better than anticipating that this is going to be a good thing wow is our roman snap kick me in the nuts now snap kick to the nuts don’t i believe there is a blessing in disguise 287 thousand shares of trade are you kidding
Me and an average of $18 i want to get into the bottom get to the bottom of why snap this sided to posts are you ready for this a 2.2 billion with a b billion dollar loss snap the social media giant you know what let’s do a snap while we’re doing this let’s do a snap live just to show you guys how simple snap is how basic it is how anybody can do it but snap they
Did not do a good job here snap well let’s do a snap here right now okay hi guys we are live on rich tv live talking on youtube about snap inc and their disastrous first quarter there we go you’re going to post that on snap live so anybody that’s watching can see it because we are going live with this information there we go there we go perfect so i just sent that
Snap so that’s what snap is it’s about these little videos and these little pictures that you just take and you send to your community you build your community in your grow community very similar to facebook but what happened here as i dissect this and i look at snapping and i look at the two ceos let’s look look at these guys here’s a laughing right there laughing
All the way to the bend let’s find out why shall we what if i know why listening do you want to find a why all right this is why people are you ready rea my goodness why snap lost 2.2 billion with a b in its first quarter as a public company let’s look at this really carefully but quickly these guys are here snap ain’t cheating executive evan spiegel write
Received a special award at eye field time that factored into a big loss for his company in its first earnings reports not snap in stock plummeted in late trading wednesday after snapchat parents first in the earnings report as a public company revealed a gigantic quarterly loss of 2.2 billion dollars the figure is four times more than revenue snapped and brought in
Before the recent quarter when it reported one forty nine point seven million in revenue so snaps right when you actually grew by four hundred percent that is a really good thing but i’m wearing red today because snap you kick me in the nuts the ceo decided to get a billion shares of debt why would you take it all in debt why wouldn’t you get convertible preferred
Shares why wouldn’t you take it as equity why would you have so much debt on your first quarterly report what are you thinking the seven year old company has generated 500 million over seven years so this is a really good thing as far as revenue is concerned but they’re losing money at a rate that only that nobody’s losing money at because they’re comparing them
To over because ubers lost a lot of money now so how did snap managed to lose that much money in just three months well the bulk of this has to do with the initial public offering that snap enjoyed in march because the company went public in the quarter it realized a gargantuan amount of stock based compensation to employees whose option vested at ipo time which
Accumulated to nearly two billion of the total so out of the 2.2 billion of losses two billion of it was in stock however as former twitter inc employee jim presser pointed out the total was far greater than the stock based compensation claimed in the ipo first quarter for a facebook who claimed 1.3 billion in stock based compensation so these guys almost doubled
That and twitter claimed 521 million in stock based compensation the difference which step was a special stock award given to the company’s chief executive co-founder even spiegel snap gave spiegel a ceo hoard are you ready for this a ceo word oh my goodness are you ready for this we give you guys a little bit of noise here for that cu award what’s going on here
What’s going on here what’s going on here with the ceo or what’s going on here with the ceo work we need to give some recognition we’re recognitions do because that’s what it’s all about it’s all about giving recognition without recognition why would we work so hard right why would we do it let’s give some recognition the fans go wild and the drumroll snap game
Spiegel a ceo award in its ipo which chief financial officer drew bolero said in wednesday’s conference call was fully realized in snaps first quarterly earnings even though it will be paid out quarterly over three years oh my goodness spiegel ceo ward equalled three percent of all snap shares after the ipo according to the march filing with the securities and
Exchange commission that ended up being thirty-seven point four five million shares that snap valued at the time at nearly you’re ready for this 1 billion dollars in stock nine hundred and seventy four million dollars to be exact those shares will be worth of much less when trading begins today as snap shares douve in after-hours trading to lower prices than they
Have ever traded on the open market snap closed last night yesterday at the end of closed at 22 98 35 percent higher than the ipo price of $17.95 the first one spiegel i’m going to give you the benefit of the doubt here i’m gonna hope a smart young guy like you isn’t trying to kick the shareholders in the nut continuously because right now that’s what it looks
Like this looks like you made me look real bad and i was real wrong and i’m admitting it i got egg all over my face you kicked me in the nuts snap come on man why would you kick me in the nuts why would you do this make sure you like it subscribe mr. rich tv live don’t forget to subscribe click the link down below and comment on the show because all i do is bring
Your winners other than snap cuz they kick me in the nuts cases
Transcribed from video
Stocks – Why did Snap lose $2.2 Billion? By RICH TV LIVE