Is Snap a good buy now?

Following the tremendous success of FaceBook, social media has already become an intimate part of our daily life. You won’t be an Earth man but someone from the Mar if you don’t use some sort of social media nowadays! Inevitably, tons of startup companies are created for managing all kinds of different social media activities and all of them are dreaming to be successful like FB. Twitter is of them but unfortunately is still struggling to stand up. Most recently we have seen SNAP debut. Will it be more life FB or Twitter? Certainly too early to say but I doubt it will be another FB like stock if it keeps its current business model. You see, its technology is by no means sophisticated enough that others cannot copy. Within just a few weeks after the SNAP IPO, FB’s Instegram has already developed its own version of SNAP type of functionality. Will there be no others to offer something similar? I really doubt! Another much bigger problem for SNAP is its targeted users. The main SNAP users are those young people aged between 18-24. Yes it is super popular but these are the ones who don’t really have much buying power for shopping because they simply don’t have much money in general. Unless SNAP can find some magic to suddenly allow this young population to spend a lot of money, I’m afraid it will be more like Twitter that has a lot of active users but just cannot make money from them. At the current stage, trading Snap for some quick move is fine but if you are thinking to put in some serious money for long term holding, think twice. You may more likely experience the similar pain as those who chased up Twitter and then desperately witnessed its relentless sliding down till now. Don’t be one of them!