Snap 'Is Quickly Running Out of Money,' Says MoffettNathanson

Snapchat initially showed great promise as it approached its IPO, but faced significant competition from Facebook's Instagram Stories. The company struggles with growth and financial challenges, needing to raise funds possibly through debt. Despite being a key competitor to Facebook, Snapchat's market position is weakened, making it a potential acquisition target. It resonates with young users but struggles against advertising giants like Facebook and Google.

What was one of the main challenges Snapchat faced after its IPO?

• Competition from Instagram Stories

• Lack of user interest in social media

• Limited advertising options

• High operational costs

What financial strategy might Snapchat need to consider according to the Moffett Nathanson report?

• Issuing more stock

• Increasing advertising rates

• Raising debt

• Cutting employee salaries

Why might it be difficult for Snapchat to raise money?

• They have no competitors

• They have too many investors

• Their business has not met expectations

• Their user base is too old

What makes Snapchat an attractive acquisition target?

• Its high stock price

• Its appeal to young users

• Its large number of employees

• Its strong advertising revenue

Which companies are Snapchat's main advertising competitors?

• YouTube and Reddit

• Pinterest and TikTok

• Facebook and Google

• Twitter and LinkedIn