July 26th, 2021 | 12:18 CEST
Twitter, wallstreet:online, Snap - Rally or Crash?
Table of contents:
Still considerable upside potential
In the recovery movement since the Corona low in March 2020, several stocks were able to multiply in part and are overvalued due to their fundamental data. The share of the largest publisher-independent financial portal operator in the German-speaking world, wallstreet:online AG, also made its investors more than happy with a performance of almost 300%. However, one cannot speak of a bubble formation in the case of the capital city company; instead, the establishment of the Smartbroker still offers enormous upside potential.
A look at the valuation of the competition alone only hints at possible price jumps for wallstreet:online in the future. The current stock market valuation is EUR 323.60 million, with Smartbroker managing a total of around 135,000 securities accounts with assets of more than EUR 6 billion. Trade Republic also manages customer funds of EUR 6 billion and says it has a customer base of "more than 1 million clients." The neobroker's valuation, brace yourself, is more than EUR 5 billion.
Enormous synergy effects
Yet wallstreet:online owns by far the larger assets. Having grown for years, portals such as wallstreet-online.de, boersenNews.de, FinanzNachrichten.de and ARIVA.de mean that more than 500,000 registered users are ready to conduct their stock market transactions in the future via the Smartbroker, which is 95% owned by the Group. Through new features, the team around the new CEO Matthias Hach wants to achieve closer integration between community and broker and thus significantly accelerate trading activity. A further milestone in faster customer growth is expected to come from the new smartphone app, which will be launched at the end of the current year and further reduce the lead over smartphone brokers.
wallstreet:online becomes a securities institution
In addition to optimizing the Smartbroker platform, the Berlin-based company plans to expand its existing KWG license. The goal is to further expand the financial services business and to expand the license from securities trading bank to securities institution for this purpose. According to the Company's plan, the necessary documents should be submitted by the end of the month.
Despite the price gains already achieved, the wallstreet:online story is still in full swing and is at the beginning of its development. The goal is to turn the combination of Smartbroker and wallstreet:online into a modern, digital financial services provider and a true community broker that is one of the market leaders in Germany in terms of innovation, size and product offering. The prerequisites of the wallstreet:online Group are unique and still promise considerable potential in the long term.
According to Credit Suisse analysts, the social media Company Snap is only at the start of a ten-year cycle. The figures presented by the US Company for the second quarter show this in an impressive way. The number of daily active users of the Snapchat photo app rose by 23%, or 55 million, to a current total of 193 million users. The Company beat analysts' forecasts significantly with record revenue of USD 982 million, a proud 116% more than the same period last year.
Although the result is still in the red, the loss was reduced by 53% to now USD 152 million compared to the same period in 2020. For the third quarter, Snap remains optimistic due to the steady success of its augmented reality platform. Thus, Snap expects revenue to increase 58% to 60% over the third quarter of 2020, with a revenue range of USD 1.07 billion to USD 1.085 billion. Due to the share price jump of almost 25% after the figures, you should wait for the share price to cool down first before investing.
News service Twitter also delivered a massive jump in growth of 74% to nearly USD 1.2 billion compared to the same period last year, exceeding its self-imposed forecast. Operating income for the same period was USD 30.25 million compared to a loss of USD 273.93 million. Operating margins rose to a current 3% after a 40% drop in the second quarter of 2020. Ned Segal, Twitter's CFO, commented after the positive results, "We continued to make significant progress on our direct response and branded products, with updated ad formats, improved measurement and better prediction. With our strong push into performance-based advertising and expanded offerings for small and medium businesses, we are creating more value for advertisers."
The winners of the pandemic, the online brokers, continue to show robust growth. wallstreet:online has tremendous synergies through the combination of community and broker and should come close to the neobrokers with its valuation at the latest after the smartphone app is established. The social media services Snap and Twitter are promising in the long term and are likely to revolutionize the advertising market for the next few years.
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