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Snap stock is back at IPO price, is this a warning sign?

(SOCIAL MEDIA) As Snap Inc.’s stock falls to IPO prices, should other tech companies be using this as a litmus test?

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Going public

Companies go public all of the time and as a result their stocks do funny things.

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As of Thursday, June 15, the stock price of Snap Inc, the instant messaging and video company behind Snapchat, Bitmoji and various other social media crazes, had dropped to its IPO price of $17.

Rundown in a snap

Snap went public on March 2 and saw a fast surge of interest, rising from that initial $17 to a peak of $29.44 within 24 hours. Since then, Snap has struggled, reporting slowed growth in revenue and user adoption, and its stock price has predictably fallen.

The struggles of Snap and other new tech IPOs have raised concerns that this may be a repeatable model: initial spike, slow downward spiral.

Those concerns get extra concerning given major tech IPOs in the offing: Altice USA, the American arm of the multibillion-dollar Luxembourg based telecom, is expected to make a 46.5 million share, $27-31 initial offer this week, and the Blue Apron meal service will be making a public offering soon as well.

Investor trepidation based on the struggles of Snap and other unique technology IPOs one investor called “tech unicorns” may well represent an obstacle for those companies and others.

nothing new

It may also be overstated. Facebook dropped below its IPO price before stabilizing. So did Amazon. More importantly, no company comes to the marketplace with a sure bet that it’s the next Amazon or Facebook, and if there’s a yardstick that works regarding long-term success in the tech sector, it’s not “has it ever dropped below its IPO price?”

A better bet, as usual, is the classic “what’s the offer?”

Troubled tech IPOs like Snap, FitBit and Box have suffered less because of vagaries of the market than because they haven’t managed to make a complete, convincing offer to investors.

It is the nature of tech companies that can change at any time, because tech invests in the future.

In the grim darkness of 1998, Apple traded at $7 a share.

Then the iPod happened. You may have heard of it.

beating the odds

The trouble isn’t “tech unicorns,” because it’s not tech. The trouble is one-trick ponies – companies that can’t diversify or find a user base beyond what existed before their initial offering.

The question for Snap, and for other troubled stocks, tech or otherwise, is whether they can beat those odds. Plenty do. Ask Josh Buckingham.

#Snap

Matt Salter is a writer and former fundraising and communications officer for nonprofit organizations, including Volunteers of America and PICO National Network. He’s excited to put his knowledge of fundraising, marketing, and all things digital to work for your reading enjoyment. When not writing about himself in the third person, Matt enjoys horror movies and tabletop gaming, and can usually be found somewhere in the DFW Metroplex with WiFi and a good all-day breakfast.

Social Media

Zillow launches real estate brokerage after eons of swearing they wouldn’t

(MEDIA) We’ve warned of this for years, the industry funded it, and Zillow Homes brokerage has launched, and there are serious questions at hand.

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Zillow Homes was announced today, a Zillow licensed brokerage that will be fully operational in 2021 in Phoenix, Tucson, and Atlanta.

Whoa, big huge yawn-inducing shocker, y’all.

We’ve been warning for more than a decade that this was the end game, and the company blackballed us for our screams (and other criticisms, despite praise when merited here and there).

Blog posts were penned in fiery effigy calling naysayers like us stupid and paranoid.

Well color me unsurprised that the clarity of the gameplan was clear as day all along over here, and the paid talking heads sent out to astroturf, gaslight, and threaten us are now all quiet.

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Social Media

We watched The Social Dilemma – here are some social media tips that stuck with us

(SOCIAL MEDIA) Here are some takeaways from watching Netflix’s The Social Dilemma that helped me to eliminate some social media burnout.

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Last weekend, I made the risky decision to watch The Social Dilemma on Netflix. I knew it was an important thing to watch, but the risk was that I also knew it would wig me out a bit. As much as I’m someone who is active “online,” the concept of social media overwhelms me almost more than it entertains (or enlightens) me.

The constant sharing of information, the accessibility to information, and the endless barrage of notifications are just a few of the ways social media can cause overwhelm. The documentary went in deeper than this surface-level content and got into the nitty gritty of how people behind the scenes use your data and track your usage.

Former employees of high-profile platforms like Facebook, Twitter, Instagram, Google, and Pinterest gave their two cents on the dangers of social media from a technological standpoint. Basically, our data isn’t just being tracked to be passed along for newsletters and the like. But rather, humans are seen as products that are manipulated to buy and click all day every day in order to make others money and perpetuate information that has astronomical effects. (I’m not nearly as intelligent as these people, so watch the documentary to get the in-depth look at how all of this operates.)

One of the major elements that stuck with me was the end credits of The Social Dilemma where they asked interviewees about the ways they are working to eliminate social media overwhelm in their own lives. Some of these I’ve implemented myself and can attest to. Here’s a short list of things you can do to keep from burning out online.

  1. Turn off notifications – unless there are things you need to know about immediately (texts, emails, etc.) turn it off. Getting 100 individual notifications within an hour from those who liked your Instagram post will do nothing but burn you (and your battery) out.
  2. Know how to use these technologies to change the conversation and not perpetuate things like “fake news” and clickbait.
  3. Uninstall apps that are wasting your time. If you feel yourself wasting hours per week mindlessly scrolling through Facebook but not actually using it, consider deleting the app and only checking the site from a desktop or Internet browser.
  4. Research and consider using other search tools instead of Google (one interviewee mentioned that Qwant specifically does not collect/store your information the way Google does).
  5. Don’t perpetuate by watching recommended videos on YouTube, those are tailored to try and sway or sell you things. Pick your own content.
  6. Research the many extensions that remove these recommendations and help stop the collection of your data.

At the end of the day, just be mindful of how you’re using social media and what you’re sharing – not just about yourself, but the information you’re passing along from and to others. Do your part to make sure what you are sharing is accurate and useful in this conversation.

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Social Media

WeChat ban blocked by California judge, but for how long?

(SOCIAL MEDIA) WeChat is protected by First Amendment concerns for now, but it’s unclear how long the app will remain as pressure mounts.

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WeChat barely avoided a US ban after a Californian judge stepped in to temporarily block President Trump’s executive order. Judge Laurel Beeler cited the effects of the ban on US-based WeChat users and how it threatened the First Amendment rights of those users.

“The plaintiffs’ evidence reflects that WeChat is effectively the only means of communication for many in the community, not only because China bans other apps, but also because Chinese speakers with limited English proficiency have no options other than WeChat,” Beeler wrote.

WeChat is a Chinese instant messaging and social media/mobile transaction app with over 1 billion active monthly users. The WeChat Alliance, a group of users who filed the lawsuit in August, pointed out that the ban unfairly targets Chinese-Americans as it’s the primary app used by the demographic to communicate with loved ones, engage in political discussions, and receive news.

The app, along with TikTok, has come under fire as a means for China to collect data on its users. U.S. Department of Commerce Secretary Wilbur Ross has stated, “At the President’s direction, we have taken significant action to combat China’s malicious collection of American citizens’ personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of U.S. laws and regulations.”

This example is yet another symptom of our ever-globalizing society where we are learning to navigate between connectivity and privacy. The plaintiffs also pointed out alternatives to an outright ban. One example cited was in Australia, where WeChat is now banned from government officials’ phones but not others.

Beeler has said that the range in alternatives to preserving national security affected her decision to strike down the ban. She also explained that in regards to dealing with national security, there is “scant little evidence that (the Commerce Department’s) effective ban of WeChat for all US users addresses those concerns.”

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