SNAP – Market expectations are for Uniform ROA to expand, but management may have concerns about growth, e-commerce, and community strength

• Snap Inc. (SNAP:USA) currently trades near historical highs relative to Uniform assets, with a 13.3x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may have concerns about long-term growth, e-commerce engagement, and community strength
  
  

• Specifically, management may be overstating the impact of their ads and optimization improvements to the acceleration of e-commerce engagement, and their focus on long-term growth investing. In addition, they may have concerns about the sustainability of Discover content growth, and the availability of political impression information online. Furthermore, they may be exaggerating the strength of their Snapchatter and advertiser communities, and the potential of COVERGIRL Clean Fresh. Finally, management may have concerns about the continued decline in revenue growth related to coronavirus and Daily Active User (DAU) growth