Snap Turns Up the Music and Virgin Galactic Goes Supersonic
Snapchat’s power grows by the day. It’s in talks with Merlin, Universal Music, and Warner Music to allow users to embed music in their posts, like Instagram does now. This will make Snap that little bit better for marketers who’re afraid of violating copyright laws.
There’s been less music streaming in lockdown because fewer people are commuting, but Merlin and co. will benefit from this news as Snap’s music embed feature will link to Apple Music and Spotify, which appeases artists. TikTok is looking to cut a similar deal, so the lasting winners here from an investment standpoint probably are the music labels.
In other news, Virgin Galactic released a chockablock trading update yesterday. It announced plans to build a supersonic business jet that travels three times the speed of sound (London to NY in two hours!), plans to send Beardy (Richard Branson) into space by 2021, and plans to retest its VSS Unity in the fall. This will all come at a cost… to investors.
Virgin Galactic shares fell 10% as backers didn’t expect a new share offering of $460 million. It’s often the case that a deluge of new shares dilutes the value in the remaining, which is why the stock is down, but issuances can also be value accretive if funds are well spent on growth.
The Invstr community will sit on the fence and wait for further updates on the superjet, but stats show it’s net buying with a 90% bullish rating, although we have watched that fall from around 95% when Virgin Galactic first went public.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.