Scott Galloway is a marketing professor at the NYU Stern School of Business and the founder of business intelligence firm L2. Galloway stopped by Business Insider to talk about the biggest names in tech. In this clip he talks about why he thinks Snap is a terrible investment. Following is a transcript of the video.
Scott Galloway: Investing in Snapchat is something that no one responsible should ever do. Snapchat is the equivalent of driving drunk. When you buy a share of Snapchat you’re giving a 26-year-old money with absolutely no recourse. No shareholder rights whatsoever and you’re investing in a company whose losses exceed its top-line and also has probably the world’s most agile and competent company in the world — Facebook has decided that they will kill Snapchat no matter what. Some serious s— went down between Mark Zuckerberg and Evan Spiegel because I’ve never seen an individual in terms of their actions be so resolute in their desire to kill and wipe from the face of the Earth another company. And unfortunately, as I do think we need more players in the ecosystem, I think Zuckerberg is going to get his way. I think they are going to erase Snapchat from the planet. If you look at Instagram stories it’s now surpassed Snap in terms of viewership. If you look at specific content from Nike and other brands when they put the same content on Instagram Stories it’s now getting more views than when its on Snapchat. Snapchat could be the canary in the coal mine that teaches us all that, you know it’s difficult to maintain growth without some semblance of profits. I believe this could be the spark that torches the market.
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