SNAP - unattractive.
So is it finally time to buy Snapchat parent, Snap? I don’t think so.
The reasoning goes beyond the stock’s ~8% decline from its Day 1 open and its high valuation. A big part of it is from competition and potential lack of focus.
Snap’s venture into Spectacles — the flawlessly executed introduction of $130 “smart” sunglasses — was excellent. Management did a fantastic job. But a few months later, there were reports that SNAP could be working on a drone. While it would be great to see it pull off another Spectacles repeat, I’m cautious of a software company getting into hardware.
Investors typically cheer when a hardware company — traditionally commoditized products with low profit margins — gets into the higher margin software business. That’s why Snap making the opposite move seems unattractive. They could pull it off, but I’m skeptical. We only need to look as far as GoPro Inc (NASDAQ:GPRO) to see why this business model seems unattractive.
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http://investorplace.com/2017/05/is-sna ... RDlHVKZN7M