Core Insights - Snap's stock increased by 6% over a week following the launch of its fifth-generation Spectacles and Snap OS 2.0, which aims to improve user experience [2] - Despite this recent uptick, Snap's stock has fallen by 30% this year, indicating ongoing struggles primarily due to disappointing financial results [3] - The current stock price of $8 is considered unattractive due to high valuation, despite average operational and financial performance [4] Company Overview - Snap has a market capitalization of $13 billion and offers a camera application with features like messaging, Snap Map, Stories, and Spotlight, along with Spectacles eyewear [5] - The company has experienced an average annual growth rate of 7.7% in revenue over the past three years, with a 13% increase in revenues from $5.0 billion to $5.6 billion in the last 12 months [10] - Quarterly revenues grew by 8.7%, reaching $1.3 billion compared to $1.2 billion a year earlier [10] Financial Performance - Snap's operating income for the last 12 months was -$654 million, resulting in an operating margin of -11.6% [10] - The company reported a net income of nearly -$546 million, indicating a net margin of approximately -9.7% [10] - Snap's debt stands at $4.2 billion, leading to a debt-to-equity ratio of 32.3%, while cash (including cash equivalents) accounts for $2.9 billion of total assets of $7.4 billion, resulting in a cash-to-assets ratio of 39.1% [10] Stock Performance - Snap's stock has seen a significant decline of 90.7% from a peak of $83.11 on September 24, 2021, to $7.76 on October 21, 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 [11] - The highest price since the decline was $17.45 on February 6, 2024, with the current trading price at $7.74 [11] - The stock also experienced a 56.5% decline from a peak of $19.25 on January 23, 2020, to $8.37 on March 18, 2020, but fully rebounded by June 1, 2020 [11]