Snap's New Monetization Approach Through Cloud Storage

about 1 month ago

Arya Radnia

"Yeah, absolutely. So, I mean, let's just start out by saying this has been an awful business for the entire existence of it on the public markets. It has done nothing but destroy shareholder capital. Management is terrible. SBC is through the roof, right? I'm not pitching this as like, oh, this is some misunderstood future prospect. The thesis relies on an ultimatum where Snap's 500 million daily active users, who likely have over 5 gigabytes of stored content, must either delete their data or pay $2 a month. Even if only 10% subscribe, it instantly flips Snap into profitability. I remain cautious, but this could be an interesting revenue stream."

Arya criticizes Snap's historical performance and high operating costs but highlights its new initiative to monetize user-stored content by charging a monthly fee. He notes that if even a small percentage of the large user base converts, Snap could see a notable improvement in profitability, although he remains cautious about its overall prospects.

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