Snap has never turned a profit, or presented a cogent plan to do so and just proved that its investors own a stock that can be wiped out whenever Mark Zuckerberg feels pissy. So what is Evan Spiegel doing to justify a stock price that is still somehow hovering just over $20 a share?
He's making deals, bro.
Snap Inc. has signed a pact with NBCUniversal for the 2018 Winter Olympics that will make the popular messaging app a home for Olympic-themed content and allow NBCUniversal to sell Games-related geofilters and “lenses” to advertisers for the first time.
The deal for next year’s Winter Games in Pyeongchang, South Korea, expands upon a similar partnership between the two companies for the 2016 Rio Olympics. It will allow Snapchat to share clips of NBC’s Olympics content in a live story that will also feature user content.
BAM! The Winter Olympics! How you like them apples?!
Wait...why are you all giggling?
Advertising commitments related to this deal could come in between $50 million and $75 million in the first quarter of 2018, people familiar with the matter said. NBCUniversal executives unveiled the Snap partnership to advertisers Wednesday as part of the annual ad sales presentations known as the “upfronts.”
That's not a bad number but even Twitter has a deal with the NFL and Facebook has one with MLB, a deal that it is surely using as practice for when the NFL dumps Twitter. Those are sports that people actually watch, and don't take place at 3 in the morning EST.
We're not saying that this Winter Olympics deal is bad (it could in fact end up quite lucrative) Snap is in full "justification of its own existence" mode right now, which might explain why it's so fond of the Winter Olympics.