Two weeks ago, we told you about the stock of a company called SNAP Interactive that makes a dating app for Facebook and other social networks called areyouinterested.
Three weeks ago, the stock was trading at 18 cents a share. Two weeks ago, it was trading at $1.20. Now it’s trading at $2.80.
Because there’s actually a real company hidden under there!
The company’s revenue jumped from $1.7 million in Q3 to $2.7 million in Q4, thanks to strong growth in app installs. Thanks to the company’s subscription accounting, cash flow was even better.
(Unfortunately, the company is still acting like a penny-stock company and pumping out triumphant press releases before they’ve even assembled their full financial results, so we don’t know yet what the bottom line or balance sheet looked like in Q4. But they looked OK in Q3.)
Based on the feedback we got when we first wrote about SNAP (see comments), the major concern with the company is that their product feels spammy and, therefore, that the huge growth in “installs” may be a function of people having no idea what they’re downloading and then never using it. But the fact that at least some people are paying for the product seems encouraging.
If anyone has actually used the areyouinterested.com app–and, better yet, paid for the service–we’d be grateful if you would share your thoughts below.
In the meantime, with the stock at $2.80, SNAP’s market capitalisation has jumped to nearly $100 million, so the stock is no longer cheap. If the company’s growth rate stays this steep, however, the company’s value could continue to jump from here.