For a recent IPO, Snap Inc. is taking a big hit. The stock dropped more than 20% when the company missed its first-quarter results, and few people seemed interested in picking up the shares. Analysts worry that Facebook is a fierce competitor that will usurp what's unique about Snap. Snapchat has recently introduced features for video and images to be maintained forever, which is not the original intent of Snapchat.
CEO Even Spiegel isn't helping. Jim Cramer joked, although he's against hazing, Spiegel is arrogant and needs to be hazed. Cramer suggested, on future earnings calls, Spiegel say he wants to do better and then turn it over to his CFO. Cramer said, "Humility is a fabulous thing."
- This is a difficult situation for the CEO of a newly public, suddenly billion-dollar company. Spiegel has to be confident, yet Cramer suggests humility. How can he do both?
- Spiegel compares Facebook to Yahoo and Snap to Google, which is one of the reasons Cramer called him "arrogant." Do you agree with the comparison? Do you agree with Cramer's assessment?
- Read more of Spiegel's earnings call here. What does he need to improve?