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Snap's problem could be a lack or relevancy: Cleo Capital's Sarah Kunst - YouTube
Channel: CNBC Television
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sarah i'm going to start with you how
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much do you think this is snap specific
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and the issues that they're clearly
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having with what apple has now done in
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terms of privacy and whatnot
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and how much do you think this is across
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the board
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i mean i think that we're about to find
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that out right you know is snap a canary
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in the coal mine for online ad dollars
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or are the problems it's having snapchat
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specific and you know they've been
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trying everything they're launching
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desktop they have a paid subscription
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product they're doing a stock buyback
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their founders you know aren't taking
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any salary as ceo and cxos and they
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still can't get the price to go anywhere
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but down so i mean there's a real
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question here of is snap still relevant
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you know is it is it kind of losing out
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to peers like instagram on a much bigger
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platform at meta and you know tick tock
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which is just much more you know
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probably day-to-day relevant for a
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younger generation now and and then you
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know you also have people like twitter
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that are you know taking up so much
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oxygen on shows like this that i don't
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know if snapchat's problems are an ad
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dollar problem or just a lack of
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relevancy problem
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conjun what are you hearing from
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investors i mean this was a stuff stock
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that remember after the ipo
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it it mean it was it swooned in a very
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big way then it sort of had this
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remarkable return or come back on
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expectations that it was actually not
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just sticking around but was going to
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excel and now we've had this sort of
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shift backwards again
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people especially institutional
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investors have been very very
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pessimistic heading into this earnings
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season i think the snap result shows you
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why because these types of moves down
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almost 30 percent pre-market have been a
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feature of this year not just you know
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not just a one-time thing think facebook
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amazon the huge one-day moves they were
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logging and snap it's striking how
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quickly things have deteriorated for the
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company you know just a few months ago
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it issued a profit warning and its
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shares fell 40 in one day here we are in
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july and now they're down another 30
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percent i think this shows you um that
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you know it might be time to buckle up
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for investors and what we're seeing is
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investors are bracing for an incredibly
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incredibly rocky earnings season we're
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seeing that in the options market where
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people are betting on the biggest moves
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around earnings since the third quarter
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of 2020. let me gunjan before i go back
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to sarah is what do you think the
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chances are this this company becomes a
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takeover target at some point
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you know i'm sure this is going to
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trigger chatter about that though it
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seems like you know the executives are
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hanging on for now they've said they're
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going to be there for the next few years
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sarah what do you think about that
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prospect given that uh twitter's finally
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getting well we'll see finally we'll see
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whether there's nothing we care about
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on twitter no no but no i mean i think
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you can't not look at the market cap
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that snap and at least think that
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somebody might consider it obviously you
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know the big players like meta are
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probably off the table for anti-trust
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reasons and and you know there's
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questions of about you know how much the
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sec and lena connor are going to keep
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you know uh going to keep silicon valley
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anti-trust issues in their crosshairs
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you know preventing a big tie up but
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certainly you know if you think there's
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value there the price looks pretty good
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to consider it take private at under 30
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billion no i'm not thinking about
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i'm not thinking of a big tech company
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i'm thinking actually more of the likes
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of like a walmart or somebody like that
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who's expressed interest if you remember
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historically in companies like tick tock
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and and whether you think that somebody
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like that would would step up give given
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the price tag that we have on the
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map has never driven revenue you know uh
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has never driven consumers spend or
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online ad dollars in the way that an
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instagram or even now a tick tock right
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it's normal now for tick tock to make
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individual skus just completely sell out
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because a product will go viral right or
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a hack as they say will go viral um you
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know snapchat doesn't have that so if
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you're you know a walmart especially
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kind of in your you know poolsmart glory
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postjet.com buy everything you can era i
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don't know you know if you really think
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that snap is going to drive the shopping
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revenue the consumer revenue or even the
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ad dollars that makes you as excited as
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it used to you know maybe legacy media
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players see it as an opportunity but a
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lot of them don't have much money right
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now either
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