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Don’t Give Up on Snap

It’s been a tough two weeks for Snap, following a tough year. Even two solid executive hires couldn’t overshadow this week’s earnings report—which warned its daily audience will continue to shrink. The company’s stock reached an all-time low below $6 a share this week and has lost half its market value this year. Investors think Snap is one-third as valuable as Twitter.

It’s tempting to think Snap’s best days are behind it or that an acquisition from Jeff Bezos—whom I hear is the one tech CEO Evan Spiegel actually seems to respect—is on the horizon. Indeed, the press has largely run with this theme recently, even as Spiegel has tried to put it to bed. But despite the challenges or the fact it may never be as big as Facebook, I think it is too early to give up on Snap. Here’s why.

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