Meta eats Snapchat's lunch
The bear case argued against Snapchat is driven by poor ad performance, inefficient cash management, and intense competition from Meta.
The argument
The speaker noted that their growth team has consistently failed to make Snapchat ads convert effectively, criticized the company's lack of fastidiousness with cash (specifically overpaying creators), and argued that Meta is completely dominating the social media landscape.
The thesis, stress-tested
✓ What validates it
- ✓Snapchat's ad revenue growth continues to lag Meta's in upcoming quarterly reports
- ✓Further compression of margins due to creator payout programs
▸ Risks discussed
- ▸Snapchat retains a highly loyal core user base that uses it as their primary communication tool
- ▸A shift in ad product performance could attract growth marketers back to the platform
Hear it yourself
"And I made sure that everybody in our company, no matter how senior they got, always were still not just a fat general sitting at the back, but a warrior who could take out their sword and actually, hands on keyboard, buy the ads. And we had a situation where we hired a head of growth. Thirty days in, nothing. Sixty days in, nothing. And I was like, alright, man. What's going on? And he's like, well, we're trying to hire the people. I was like, okay. Look. Well, okay. Tell me what you're doing for hiring. Well, I gave the head of HR, like, the brief what I'm looking for."
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