The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP051: Snap Inc. (SNAP): Why Hasn’t Snapchat Become a Social Media Titan? w/ Shawn O’Malley & Daniel Mahncke
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Dec 21, 2025 Shawn and Daniel dissect Snap Inc.'s struggle to thrive despite a massive user base. They discuss the pitfalls of its founder-led model and management issues. The hosts explore how international growth is worsening Snap's unit economics and the challenges in monetizing its innovative features. They examine Snap's attempts at AI and subscriptions, noting their limited impact on profits. Ultimately, they conclude that Snap lacks a solid investment case, grappling with competition and an absent durable moat.
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Scale Without Profits Is Untenable
- Snapchat grew massive user engagement but failed to turn that into shareholder value over years.
- The hosts call this "unprofitable growth" where scale increased losses instead of profits.
Listen To Earnings Calls For Management Signals
- When researching companies, listen closely to earnings-call tone and engagement as a management signal.
- Use verbal cues to detect whether a team truly believes in and drives the business.
Founders' Voting Control Blocks Investors
- Snap's dual-class ownership gives founders ~95% of voting power while public shares have no votes.
- The hosts view this as an extreme corporate governance red flag that shields management from accountability.