𝗪𝗵𝘆 𝗜 𝗝𝘂𝘀𝘁 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗲𝗱 𝗮 3% 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗶𝗻 $SNAP I spent the last couple of days listening to many interviews with Evan Spiegel, trying to understand the company, its problems and, more importantly, where the opportunity might be. The thesis is actually pretty simple. $SNAP has around 971 million people using the platform every month and 493 million using it every day. Yet the entire company is currently valued at only around $9 billion. 𝗧𝗛𝗘 𝗩𝗔𝗟𝗨𝗔𝗧𝗜𝗢𝗡 𝗚𝗔𝗣 One way to understand how cheap that is is to look at how the market values each daily user: $RDDT: approximately $241 per daily user $META: approximately $393 per daily user $SNAP: approximately $18 per daily user Obviously, this comparison is not completely apples to apples. $META and $RDDT are much better at monetizing their users. But that is exactly the point. $SNAP does not need to become $META. It already has the users. It simply needs to become better at making money from them. 𝗧𝗛𝗘 𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦 𝗜𝗦 𝗔𝗟𝗥𝗘𝗔𝗗𝗬 𝗜𝗠𝗣𝗥𝗢𝗩𝗜𝗡𝗚 $SNAP reported its latest earnings on August 3, 2026. Revenue grew 19% from a year earlier to $1.6 billion. Daily users grew 5%. Free cash flow increased from $24 million to $121 million, while the quarterly net loss fell from $263 million to $164 million. The company is still losing money on an accounting basis, but the direction is clearly improving. And when a company with almost 1 billion monthly users is valued at only around $9 billion, even relatively small improvements in monetization can have a huge effect on the value of the business. 𝗔𝗜 𝗖𝗢𝗨𝗟𝗗 𝗖𝗛𝗔𝗡𝗚𝗘 𝗧𝗛𝗘 𝗘𝗖𝗢𝗡𝗢𝗠𝗜𝗖𝗦 After listening to many interviews with Spiegel, it became pretty obvious to me that $SNAP could be one of the companies that benefits enormously from AI. Historically, $SNAP has had to compete for attention and advertising dollars against giants such as $META and TikTok, while operating with a fraction of their resources. AI changes some of that. Engineering becomes cheaper. Advertising becomes more efficient. Recommendations improve. Content becomes more personalized. Smaller companies can do things that previously required much larger teams. For $SNAP, that matters a lot. They already have the users. The problem has always been monetizing them. If AI helps $SNAP close even a small part of the monetization gap between itself and the larger social platforms, the operating leverage could be enormous. 𝗘𝗩𝗘𝗡 𝗧𝗛𝗘 𝗚𝗟𝗔𝗦𝗦𝗘𝗦 𝗖𝗢𝗨𝗟𝗗 𝗕𝗘𝗖𝗢𝗠𝗘 𝗔 𝗖𝗔𝗧𝗔𝗟𝗬𝗦𝗧 There is another interesting part of the story: Specs. $SNAP recently introduced its new augmented reality glasses at around $2,195. I think there is a very good chance they will be a commercial flop. At that price, it is difficult to see them becoming a mass-market product. Strangely, I think that could actually become a positive catalyst for the stock. Spiegel has spent years pursuing augmented reality hardware. If Specs fail badly enough, perhaps management finally understands that this is not where the value of $SNAP is today and starts focusing more aggressively on the core business. That would mean more attention on advertising, subscriptions, engagement, margins and monetizing the enormous user base they already have. But $SNAP doesn’t need to close the entire gap. It doesn’t even need to come close. It just needs to become less bad at monetizing the users it already has. If that happens, I think this can easily be a 100% stock from here. I initiated a 3% position today at $5.15 per share.