When is the Facebook IPO? How can I buy shares in Facebook? How much is Facebook stock? Why? Why? Why? Zuckerberg has been running around New York in his “hoody”, refiling once again the Facebook S-1 to adjust for lowered revenues estimates due to increased mobile phone use. Apps that feed the social giant, like Zynga (Nasdaq: ZNGA), are a much better bargain and easier to diversify than putting all your faith into Facebook stock.
Shares in the penny stock of SNAP Interactive Inc. (OTC: STVI), a dating and social networking software application under the AreYouInterested.com brand that can be accessed on Facebook®, mobile devices such as iPhone® and Android®, as well as a stand-alone website, rose as high as $1.74, an intraday gain of 25%, before closing at $1.61, up 22 cents. The question you have to ask about Facebook (Nasdaq: FB): “Why buy the cow when all you want is the milk?”
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STVI Stock Chart:
Market Cap (intraday): 70.41M
Price/Sales (ttm): 3.68
Price/Book (mrq): 11.18
Revenue (ttm): 19.16M
Revenue Per Share (ttm): 0.51
Qtrly Revenue Growth (yoy): 97.10%
Gross Profit (ttm): 16.23M
(May 17, 2011): 2.99
(Oct 4, 2011): 0.48
Avg Vol (3 month): 81,515
Avg Vol (10 day): 63,900
Shares Outstanding: 43.73M
% Held by Insiders: 61.34%
SNAP Interactive recently filed their own S-1 for the resale by selling stockholders of 6,630,000 shares of STVI common stock. The Company will not receive any proceeds from the sale of the resale of STVI common stock by the selling stockholders. All of the net proceeds from the resale of the Company’s common stock will go to the selling stockholders. Makes sense since the Company had more than adequate cash as of December 31, 2011.
Beyond that, these are just some of the key financial highlights SNAP Interactive had for 2011:
· Revenue increased 187% to $19.16 million for 2011 compared to $6.67 million for 2010;
· Deferred revenue as of December 31, 2011 increased 62% to $3.14 million compared to $1.98 million as of December 31, 2010;
· Overall liquidity, including investments as of December 31, 2011, increased 194% to $8.88 million compared to $3.02 million as of December 31, 2010, primarily as a result of the January 2011 financing;
· Advertising and marketing expense increased 274% to $14.63 million for 2011 compared to $3.91 million for 2010; and
· Net loss increased 211% to $3.63 million for 2011 compared to $1.17 million for 2010.
The key product highlights SNAP interactive had for 2011 include:
· Adding 14 million new profiles to the AreYouInterested.com brand;
· Providing 1.9 million downloads of our AreYouInterested.com iPhone application from the iPhone App Store;
· Launching a mobile web version of AreYouInterested.com; and
· Increasing mobile engagement to 13% of all logins during December 2011.
About STVI Stock:
Since August 2007, SNAP Interactive’s AreYouInterested.com has consistently been one of the leading dating applications on Facebook based on:
• (i) number of daily active users,
• (ii) number of monthly active users, as well as
• (iii) number of net installations (“installs”)
AreYouInterested.com users create a personal profile by entering search criteria concerning potential matches. Users are able to view pictures of other users meeting that criteria and indicate if they are “interested” in a user by clicking on a “yes” button above the picture of that user. The Company notifies users when there is a mutually interested match.
In addition, once users become paid subscribers, they are able to communicate on an unlimited basis with potential matches.
Until recently, STVI also earned revenue from AreYouInterested.com through the direct sale of “points.” Users could either purchase or earn points by performing various activities on the product, such as by browsing profiles, that could be used in exchange for purchasing virtual gifts on the application and accessing certain other premium features on our application.
In February 2012, STVI discontinued the sale of points and decided to focus solely on subscription and advertising revenues.
Toview the SEC filings for SNAP Interactive, click here.
Bottom Line: The penny stock of SNAP Interactive, STVI, was trading as high as $4.50 in Q1, 2011. Considering the extensive increase in marketing and advertising expense and the results of additional users, downloads, and the new mobile version, STVI is in a perfect position to milk the Facebook cow for both revenues and marketing in the shadows of the IPO launch. Are you interested?