Snap (NYSE:SNAP) has fallen 71% from its highs in September 2021. With a high expected growth rate on the topline of 33% the next 4 years, this stock warrants a closer look to determine whether current share prices do really offer investors an asymmetric opportunity to initiate a position. This article covers Snapchat’s growth story as well as the possibility for the company to be the leader in the AR software and hardware segment, which although if true, would be years away.
Just like most other social media companies out there, Snap primarily makes its revenues from advertisements. Close to 99% of the overall topline was attributable to ads for the fiscal year ending 2021, and the other 1% to ‘snap spectacles and other sources’. In terms of monthly active users (MAUs), Snap is still…