""It is more than passing strange that Snap - with nearly 1 billion MAUs, reaching 75% of users aged 13-34 globally, with 350 million of those users engaging with AR tools... can be bought for just $7.2 billion.""
""Irenic offered several recommendations that it believes will put the company on a path to reach $26.37 per share, which would give it a market cap of around $35 billion.""
""The firm is calling on Snap's leadership to spin off or shut down its Specs business, which it estimates is consuming $500 million in cash per year, and focus on using AI to improve ad monetization.""
Snap Inc.'s shares rose over 13% after Irenic Capital Management acquired a 2.5% stake. The firm claims Snap has underperformed the Nasdaq by 444 percentage points since its IPO. Irenic argues that Snap's user engagement and demographics justify a higher valuation. Recommendations include spinning off the Specs business, improving AI-driven ad monetization, and reducing workforce costs. The firm believes these changes could increase Snap's share price to $26.37, raising its market cap significantly.
Read at TheWrap
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