California-and the L.A. area especially-keeps losing corporate headquarters--WHY?

[TexasPlaya]

Originally Posted by Shawn

As someone on the inside, I can tell you that SNAP will go the way of Zynga, albeit for different reasons: SNAP stock will be a couple bucks in two years, max.

Why? Because SNAP is a one-product company, and that product's value props have been co-opted by brands with bigger user bases and much stronger financial foundations. And more to the point, Snapchat sucks as an ad delivery vehicle. It's not brand safe, and the F500s with proper advertising budgets won't spend with SNAP the same way they spend with Facebook and Google.

So you have a single-product company, with an undifferentiated product and a daily user base which has matured to slow growth / flat growth, and no real way of monetizing said users. They can live off their IPO funding for a while, but without a self-sustaining business model, they have a definitive shelf life.

Calling themselves a camera company was a dead give away.

[Shawn]

Originally Posted by TexasPlaya

Calling themselves a camera company was a dead give away.

I laughed so hard when I saw that!