I’ve never written about my former life as a sell side analyst for an investment bank because it’s ancient history. But after seeing the massacre of Snap Chat’s stock this morning (well deserved) and the disgraceful way the analysts that were part of the underwriting syndicate came out with their trumpets and soap boxes and told unsuspecting investors that investing money in Snap Chat was still a good idea I was reminded exactly why I left that business. It was all a lie.
I could be wrong but I see the value of Snap Chat being the poster child for our world’s over exuberance. We’ve been here before. In the dotcom days the poster child of excess and subsequent failure was Pets.com. Selling pet supplies online, genius!!! From IPO to failure in a matter of months. I know Snap isn’t Pets.com but in what world does an “entertainment” company that lost $2.2 billion in one quarter worth $21 billion? I guess in a world full of unicorns.