Uploaded April 2025 | Updated September 2026, 2 weeks ago
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Snapchat is one of the largest social media platforms in the world, with 450 million daily active users and 850 million monthly active users. But, despite their extraordinary scale, the company is not very profitable. In fact, they’ve only had 2 profitable quarters in their entire history, and these were pretty underwhelming profits as well, coming in at $23 million and $9 million, respectively. For context, Meta profited $62 billion in the most recent 12-month period. Some of this has to do with Snapchat’s demographics, which tend to be younger individuals who are less valuable to advertisers. A lot of it, however, has to do with how Snapchat is structured. Unlike other social media platforms, where users spend hours upon hours doom-scrolling, Snapchat is more of a platform where you just check in throughout the day. This has made traditional ads far less lucrative than their social media counterparts. This video explains the various factors holding back Snapchat from a financial perspective and why the company isn’t profitable despite nearly a billion active users.
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Socials:
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Timestamps:
0:00 - Snapchat’s Crisis
0:38 - Origins Of Snapchat
4:16 - A Root Problem
11:02 - A Turning Point?
Resources:
pastebin.com/7qnT2KBX
Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
silomarkets.com/disclosures
Disclosure: This video is sponsored by Proton Pass. Some of the links in this description may be affiliate links, which means I may earn a small commission at no additional cost to you.
Start browsing securely from anywhere! Check out Proton Pass for a safer, faster, and more open internet using my link → proton.me/pass/logicallyanswered
Snapchat is one of the largest social media platforms in the world, with 450 million daily active users and 850 million monthly active users. But, despite their extraordinary scale, the company is not very profitable. In fact, they’ve only had 2 profitable quarters in their entire history, and these were pretty underwhelming profits as well, coming in at $23 million and $9 million, respectively. For context, Meta profited $62 billion in the most recent 12-month period. Some of this has to do with Snapchat’s demographics, which tend to be younger individuals who are less valuable to advertisers. A lot of it, however, has to do with how Snapchat is structured. Unlike other social media platforms, where users spend hours upon hours doom-scrolling, Snapchat is more of a platform where you just check in throughout the day. This has made traditional ads far less lucrative than their social media counterparts. This video explains the various factors holding back Snapchat from a financial perspective and why the company isn’t profitable despite nearly a billion active users.
Earn Cash Back On Stocks: Up To $5,000 Per Year
silomarkets.com/logic
Free Weekly Newsletter With Insiders:
logicallyanswered.co
Socials:
instagram.com/hariharan.jayakumar
Discord Community:
discord.gg/SJUNWNt
Timestamps:
0:00 - Snapchat’s Crisis
0:38 - Origins Of Snapchat
4:16 - A Root Problem
11:02 - A Turning Point?
Resources:
pastebin.com/7qnT2KBX
Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
silomarkets.com/disclosures
Disclosure: This video is sponsored by Proton Pass. Some of the links in this description may be affiliate links, which means I may earn a small commission at no additional cost to you.
