Snap, the parent company of Snapchat, is trading about 57% below its two-year high while generating free cash flow at nearly double the rate of the median S&P 500 company. Over the last twelve months, the company produced $0.71 billion in free cash flow, giving it a free cash flow yield of 7.7% compared with the S&P 500 median of 4.2%. Revenue grew 12.6% over the past year, with the most recent quarter up 19% year-over-year, driven by a recovering advertising business and an 85% jump in other revenue led by the Snapchat+ subscription. Management has said free cash flow per share will be its primary financial objective going forward. The market's discount reflects skepticism about Snap's multi-year investment in Specs augmented reality glasses, which carry a $2,195 per-device price and face competition from larger rivals, with mass market adoption not expected until the end of the decade.
Apple Inc.
Amazon.com IncSnap IncStrong cash generation and free cash flow yield highlighted, with management focusing on FCF per share.
Pinterest Inc
S&P Global Inc