Galloway said he would buy Snap shares, betting the stock could rise manifold if Spiegel exits the hardware business.
- Snap is under pressure from investors who see its high investment in consumer gadgets, particularly the Specs augmented reality glasses, as a major headwind.
- Snap stock plunged sharply in mid-June, after the company announced its Specs AR glasses.
- Snap will host an event on Sept. 16 to showcase Specs.
NYU Stern School of Business professor and market commentator Scott Galloway said he would buy Snap, Inc. shares despite their valuation remaining high, adding that the stock could rise manifold if CEO Evan Spiegel moves away from the hardware business.
“I’m thinking about buying shares in Snap. I think Snap is dramatically overvalued, and I think at some point, Evan has to wake up from this decade-long hallucination where he’s wasted three and a half billion dollars to try and prove he’s Steve Jobs. He’s not,” Galloway said in his Prof G Markets podcast
“He’s Mark Zuckerberg, and it’s a great core business. It’s the easiest five or 10x I see in the marketplace. If we can just convince this one guy to either spin the hardware unit or reduce the amount of money he’s taking into the street and burning it, but you have to look at,” he said.
Galloway is an NYU Stern marketing professor and a prominent tech analyst best known for his sharp analysis of Big Tech, capitalism and corporate strategy. He is also a co-host of the Pivot podcast and founder of several companies.
SNAP’s AR Play, Investor Concerns
Snap is under pressure from investors who see its high investment in consumer gadgets, particularly the Specs augmented reality glasses, as a major headwind. Snap stock plunged sharply in mid-June, right after the company announced the latest AR glasses and remained 34% lower since the start of the year.
Shares recovered earlier this month after Snap reported second-quarter revenue above market expectations, thanks to increased advertising spending during the FIFA World Cup and stronger campaign activity from large advertisers in North America, sending its shares up 13% in extended trading.
Some investors and analysts contend that Snap has a strong user base and should focus on monetizing it through better products. Meanwhile, Meta Platforms have created a formidable lead in the AG glasses market through its Meta Ray-Bans.
Snap will host an event on Sept. 16 to showcase Specs. While the June announcement covered the design, the $2,195 price tag, and early pre-orders, the upcoming event would serve as the formal physical launch and first deep public hands-on demonstration led by Spiegel.
SNAP: Retail, Analyst View
On Stocktwits, retail sentiment for SNAP dipped to ‘bullish’ on Tuesday, from ‘extremely bullish’ the previous day. Message volume also came down to ‘neutral’ from ‘extremely high.’
“The market is still pricing $SNAP like it’s stuck in 2022—focusing on legacy ATT damage and cash burn. But with nearly 1B MAUs, Snap doesn’t need to buy new users; it just needs to monetize the massive base it already owns,” a trader said.
“AI is driving ad ROI, subscription revenue is surging, and positive FCF is finally unlocking operating leverage. It doesn’t need to beat $META—it just needs Wall Street to stop treating it like a broken company. Classic asymmetric trade,” they said.
Currently, 29 out of 46 analysts recommend ‘Hold’ on SNAP, 11 rate it ‘Buy’ or higher and three rate it ‘Sell’ or lower, according to Koyfin. Their average price target of $7.28 implies a 36% upside to the stock’s closing price on Monday.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<