After reporting another blockbuster quarter late on Thursday, Snap Inc (NYSE: SNAP) is up about 20% in the stock market this morning. Compared to the year-ago period, shares of the social media company have now more than tripled, leading investors wondering if they’ve missed the boat already.
Mitch Rivers’ comments on CNBC’s “TechCheck”
RiverPark Capital founding partner Mitch Rivers, however, is positive that SNAP isn’t yet done with its bull run. On CNBC’s “TechCheck”, he said:
“It’s really hard to find durable growth businesses that are still at the early stage of a giant secular trend. They need a great management team, a big market, an ability to execute, a great business model; I think Snap has all of it. There’s always pullbacks in such stocks. But you should buy some today and wait and buy some more when it’s down.”
According to Rivers, Snap’s market-beating results despite Apple’s new operating system changes is a testimony that Snap has the ability to adapt and innovate around it. He further predicted that the impact was likely to remain limited in the future as well since Snap wasn’t dependent on Apple or Android and had a “direct relationship with its customers”.
Such an ability, as per Rivers, drives further optimism for the Santa Monica-based company as the technology space is known for its fast-changing landscape.
Social networks are the “cable nets of today” for advertisers
Rivers sees ads as a major source of revenue for social networks that he dubbed the “cable nets of today” for advertisers.
“Ads on Facebook cost about $50 a user, on Snap, it’s about $10 a user. Facebook’s ads per user are still growing 33%, so the growth of 100% plus at Snap means it is a long way from mature,” he added.
At the time of writing, Snap is valued at more than $121 billion.
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Wajeeh Khan
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