I'm wondering if folks have any opinions of SNAP vs. PINS, as I'm considering a spread trade (long one short the other). Here's the deltas that I find (keep in mind SNAP reports things in DAU and PINS reports things as MAU, therefore things like ARPU are not comparable between them):
– As of today PINS has a higher market cap than SNAP ($16.77B vs. $15.51B)
– SNAP has a lot more revenue than PINS ($4.6B vs. $2.8B for FY2022)
– SNAP has a lot more debt than PINS does (about $4B more)
– They both break out revenue into NorAM, Europe, and Rest of World (ROW). Revenue growth is pretty flat across all geographies for both companies, with the exception of SNAP's RoW which is +28% YoY.
– SNAP has 750M MAU vs. 450M MAU for PINs
– ARPMAU is very similar: $6.13 (Snap) vs. $6.22 (Pins) (Note: SNAP in its earnings release reports ARPDAU as opposed to ARPMAU, this is calculated based on taking revenue divided by their MAU).
What explains PINS being worth more than SNAP despite significantly lower revenue / users? Is it simply that SNAP's balance sheet looks so much better? Anyone have any insights?
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