Snap Inc. (SNAP)

Pulled back with the group. Look at XLC, and you'll see it's making new relative strength highs. Wind at your back. He'd prefer FB, but you could buy this.

His son has abandoned Snap and Instagram. He thinks it is going to do better if they stop Facebook (FB-O) to continue stealing their best features. It is tempting to say they are too small to niche and they won’t making it. He wouldn’t buy it, but it is interesting to see.

He owned it, but they disappointed in earnings. He made some money on this (then bought Twitter). So...he recommends Twitter instead. Twitter has 336 million active users after purging a large portion of fake accounts and bots. Some investors were suspicious of this, but he sees this is an opportunity. Twitter has a very long runway--he's very bullish.

It’s a big tech stock with no earnings. He doesn’t know that much about the stock. It takes a long time for companies like this to make money, if they ever do, The investor has to decide whether this particular one is likely to become profitable. There’s a lot of competition. The stock hasn’t done well since it has gone public. He trusts the market.

They're innovative, but Instagram can quickly match their innovationst and they can understand the user better than Snap, because of the data that Facecook (its parent) has.

A stock he has really wanted to buy. It has been really disappointing. Every time it gets close to $16, it falls off. He can't believe it is this cheap. As a passing interest, he would continue to own it and buy it, for no other reason than he likes the app itself.

The chart shows the stock hasn't gone anywhere, but just sideways, since July. You are best off to wait until it breaks out of the channel.

The earnings report was pretty dismal. This was a $20 billion app. They did it because they could and could monetize it, but since going public, they hit the top. The average daily usage is down quarter over quarter. A great example of how you have to be very, very careful when an IPO comes out, and what the motivation of the people selling it are.

He has made a lot of money on internet stocks, but on this one he has to side with the shorts. 20% of the float is being shorted. Instagram is copying a lot of their features. They don’t have a moat around their business model. It can pop on good news, though.

Based on a very short term chart, and it is not a long enough period to draw any firm conclusions on support, resistance, etc. In the short term, the stock is trading down and looks like it is trying to break that downtrend. On the near term, it looks somewhat positive, but there is not enough data to make any big bold predictions.

He’s been pretty pessimistic on this since the beginning. The problem is, this is up against Facebook (FB-Q) which has monthly active users of 2 billion and daily active users of 1.5 billion. The spending that Facebook can bring to bear is going to drown this company. If they are going to put up a good quarter, it is going to be this one. He would be real careful about heading into the tsunami of lockup shares that are coming next week.