In an effort to replicate Snapchat, Facebook (FB) has updated its Messenger application so that users can send their friends 15-second videos (read The Ghost Of Snapchat for more information). This effort is the latest push by Facebook to increase its mobile messaging presence. The company previously purchased its most notable competitor, WhatsApp, for $19 Billion. Facebook’s Messaging application alone has over 200 million active users per month.
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An Uber Investment
Last Friday, transportation network provider Uber announced that it raised an additional $1.2 billion of primary capital, raising its valuation to $17 billion. In just one year, Uber’s perceived value has quadrupled; furthermore, the company is a mere four years old. Now, Uber operates in 128 cities, in 37 countries, around the world and is worth more than rental car competitors Avis (CAR) and Hertz (HTZ).
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Navigating The Maps Market
Apple (AAPL) has acquired social maps application Spotsetter to address its problematic maps application. In an attempt to differentiate itself from the competition, Spotsetter was designed to provide personalized destination recommendations for its users. This is accomplished by linking your social media accounts to Spotsetter's mapping service (i.e. via Facebook, Instagram, and Twitter).
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When Ignorance Supersedes Success
In last week’s article, The Ghost of Snapchat, I detailed how Snapchat CEO Evan Spiegel made a $3 billion dollar mistake by rejecting Mark Zuckerberg's buyout offer. The pending release of “Slingshot,” Facebook’s (FB) version of the Snapchat application, combined with the company's massive user base, displays how Snapchat’s monopoly over “disappearing” photo-sharing services is on the decline.
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The $5 Billion Mistake
Last week, social media website Pinterest announced it had raised $200 million in new funding. These new monies increased Pinterest’s valuation from the $3.8 Billion mark, reported in October of 2013, to $5 Billion. But, is the company actually worth this much, or is this simply another ridiculous Silicon Valley appraisal (read more about what drives irrational investing here)?
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The Internet Of Everything
Last week, tech giant Cisco (CSCO) beat quarterly revenue estimates by $120 million and beat earnings guidance by $.03. Cisco issued its results in the late hours of May 14th, prompting an after-hours trading surge of Cisco stock. After closing at around $22.80 per share, Cisco opened on May 15th at over $24 and is now priced at $24.82. Additionally, Deutsche Bank upgraded Cisco to a “buy” rating, with a price target of $30.
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The Ghost Of Snapchat
In November of last year, Snapchat, the popular “disappearing” photo-sharing app, turned down a $3 billion all-cash buyout offer from Mark Zuckerberg’s Facebook (FB). Evan Spiegel, the CEO of Snapchat who would have personally received about $750 million from Facebook, inexplicably stated, “I think trading for some short-term gain isn’t very interesting.”
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