Dennis Gartman Snaps In Epic Rant Against Snapchat

It took just a few milliseconds for 25% of Snapchat's market cap to disappear yesterday after the company reported abysmal earnings. This morning none other than Gartman appears to have taken offense at the SNAP bloodbath, and in his latest letter he goes off on an epic rant against the company he calls "a time sapping hobby; a diversion."

Finally, is there anything in the investment world less investable than SNAP?

 

This is a company losing millions of dollars/month, whose product is the ability to create funny pictures of friends that can be sent via the net and messages that disappear soon after having been transmitted.

 

This is utter nonsense; This is not a business… this is a time sapping hobby; a diversion; a silly little waste of aggregated time that could be spent “profitably” but which is spent stupidly instead.

 

Although we know that teenagers… and adults who think of themselves as teenagers… love this silly little “app,” but it is simply an app… and a silly one at that.

 

Is anyone with a rational investment horizon and a sense of history of investments surprised by the fact that since having gone public at $24/share SNAP’s shares have gone at best sideways and last evening fell nearly 30% on disappointing sales and “eye-ball” counts.

 

Again, as Herb Stein said, that which cannot continue won’t. SNAP, snapped and the investment world is a bit better place for its having done so. We trust we are clear.

What is perhaps even more amusing is that despite the stock crashing to all time lows, the bulk of sellside analysts, most of whom came out in such strong support of SNAP when it IPOed (in gratitude for being on the underwriting syndicate) have maintained their bullish positions.

Some examples below:

 

A few, however, are at least somewhat honest.