Snap Inc. (SNAP), the parent of Snapchat, came under pressure last week after Guggenheim analysts struck a cautious tone following their review of Q3 user growth. The stock has fallen 24% year-to-date, in stark contrast to Meta Platforms (META), which has climbed over 30%. I believe the market's skepticism is justified, as Snap still lacks clear, defensible competitive advantages to drive sustained growth and monetization.
Subscription-based revenue models, exemplified by Netflix, provide predictable revenue streams and enhance customer lifetime value, which can be applied even in traditional industries.