Snapchat Is Still Losing Money 15 Years Later Despite 971 Million Monthly Average Users
Don't count on Snapchat to stage a rally.
Overview
Growth investors are OK with trading off profits for high revenue growth as long as losses get smaller over time. That setup implies that a company can eventually become profitable.
However, if a company remains unprofitable for 15 years, it's best to stay on the sidelines. Snapchat (NYSE: SNAP) fits that category. It's still unprofitable despite having 971 million monthly active users (MAUs). The stock is down by more than 30% year to date.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.