In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
I imagine investors view Snap as an alternative to the fast-growing video-sharing app TikTok. In October 2020, Statista estimated TikTok was the seventh-largest social media platform with 689 million active users.
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Moreover, Zephoria notes, “as of March 2019, “Snapchat reached 90 percent of all 13-24-year-olds and 75 percent of all 13-34-year-olds in the U.S.” Additionally, Zephoria calculates Snapchat had 60 million active users in Europe and 79 daily active users in North America in 1st Quarter 2019.
Hence, Snap (NYSE: SNAP) has a low share price; yet its social network reaches advertisers’ most sought after consumers. Advertisers like the under-34 crowd because they are more likely to change brands. Moreover, today’s 25-year-old club girl is tomorrow’s soccer mom; and household shopper, and she is using Snapchat.
The potential of this are absolutely staggering. Just a few of the things Uncle Warren can do with all that cash include:
Buy America’s second largest grocer; Kroger (NYSE: KR), outright and still have $75.56 billion left in the bank. That’s amazing because Kroger reported revenues of $118.05 billion on 31 July 2017. Kroger had an enterprise value of $32.74 billion on November 10, 2017.