I’m a chartist, so I don’t normally make a habit of shorting stocks that have just a few days of historical data. I made an exception for Snap (NYSE:SNAP), however, since everything -- everything!! -- about this company screams “ridiculous overvalued bubble”, including, but not limited to, Evan Spiegel’s smug little cleft-chinned face on every magazine cover including, importantly, Time:
I’m a pretty big believer in the “Cover Curse”, but that normally applies to such business magazines as Forbes, where public stocks tend to be the dominant topic of conversation:
(I’ll note, regarding the above cover, that the stock immediately reversed the moment the issue hit and this “sexiest stock” fell from $70.96 to $25.98, making it just about as “sexy” as the egg-shaped bald dude shown therein).
But if Forbes is a bad cover curse, Time is far, far worse.
Snap, weirdly, holds itself out as a “camera company”, which is strange since it's actually a company that gives away an app for snapping disappearing pics. But it also occurred to me that there was another “camera” company that was red-hot and crazy-popular, just like Evan’s little outfit. Consider the following:
My conclusion? I think Snap’s performance so far is a good indication of what’s to come.
Next stop: the teens.
