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Max Grigoryev

Today's #Tech News: Snap, Elevate And Others

Just want to quickly summarize what happened today in a tech field:

$SNAP got upgraded by Morgan Stanley and Goldman Sach

I wouldn't say that it's pure underwriters play, but I do see some reasoning behind their upgrade. Snap could be a great tool for increasing brand awareness, however there are some obvious issues that investors should keep in mind: it's still difficult to measure the efficiency of advertising through Snap + its audience is relatively young. I think long-term value investors should just keep this one in the watch list. 

$ELVT: we have a new IPO deal coming

Elevate has filed for IPO, the company is offering 7.7 million shares at a range of $12-14. Underwiters are UBS Investment Bank, Jefferies, Stifel, William Blair and BB&T Capital Markets. Why I will be watching this IPO: Elevate's financials are pretty interesting, revenue keeps growing while margins are narrowing + big banks keep warming up the sector. $LC sold a huge portfolio to Goldman Sachs and JP Morgan. Potential risks - bb banks such as those who bought LC's portfolio. Goldman has already built their own personal lending tool, perhaps others do so now. 

Check the prospectus here.

Google has slightly recovered

As we all know Verizon, AT&T and others put on hold their Google's campaigns because of their ads appearing alongside with violent content. I do not consider it as a threat to Google's advertising capacities as far as:

  1. Google's algorithms are able to create a temporary solution of ads segmentation - add a white-list of channels where brands can put their ads;
  2. Google's capacities of battling with not only violent content but also with fake news are absolutely undervalued - take a view at Google from the user's standpoint: when you look for any information you need, do you see any rude or violent websites / articles / content? I guess, no. That's because Google is working on cleaning up the search results in addition to current Google News filters they implement to every news source.

So as a short summary, Google is fine - one of the most popular websites around the world ('battling' with Facebook for the 1st spot) has a great trustworthiness level among its users worldwide. This fact will make advertisers come back.

I'm personally waiting for any comments from Twitter regarding the TwitterDeck - paid subscription service that the company might release quite soon. Twitter's APIs are really convenient and useful, they allow you to pull almost any publicly available data automatically, however there is a chance that by launching the TwitterDeck they will cut the data you can get from their APIs. It's my main concern as of now, only time will show how Twitter's management is going to handle it.

Share today's news that you think are worth reading in the comments below.