SnapChat is intrinsically worthless

This image deleting messaging system is now being valued at about $3.6 billion by its own investors. This is shocking as Snapchat is based off of deleting its own products. Users send a “snapchat” or a picture to their friends and within seconds that picture is deleted.

Tech blogger, Roy Murdock makes an argument that Snapchat is actually worth $0. He says that because Snapchat deletes its most valuable data, the pictures, it has no competitive advantage over any other social media sites. In addition, he states they can make no ad revenue and have no patents that other companies are interested in.

However, Snapchat is second only behind Facebook on daily uploaded pictures. In addition, there is so much potential for them to make revenue through different marketing strategies such as adding features to premium members or being able to follow celebrities much like twitter allows.

Articles: http://www.businessinsider.com/snapchat-business-model-is-intrinsically-worthless-2013-11

http://www.quora.com/Snapchat/How-does-Snapchat-plan-to-make-money

Pictures: http://www.businessinsider.com/snapchat-vies-for-photo-sharing-crown-2013-66

 

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