Snapshot · Pivot
Snap's subscription revenue of approximately $1 billion is growing at 60% per year, demonstrating a valuable core business that the Specs division is overshadowing.
Where this was said
At 1:04:00 · chapter starts 1:00:25
Scott builds the bull case for Snap's core business before making his activist call. The social network has 1 billion monthly active users, over $6 billion in revenue, subscription revenue of $1 billion growing at 60%, and — if re-rated to Reddit's forward multiples — could be worth 3.5 times its current market cap. [1] — Scott Galloway "Snap: $6B+ revenue, growing 10%/yr: Snap has over $6 billion in annual revenue still growing 10% per year, with subscription revenue of $1 …" 1:03:52 The problem is the Specs division, which has consumed $3.5 billion over a decade for essentially zero return. Scott argues that a disciplined activist taking 5-10% of the company could force Evan Spiegel to either spin Specs into a separate entity or shut it down entirely, unlocking the core business's real value. He frames the broader IPO market backdrop — predicting 20 new hedge funds from SpaceX, Anthropic, and OpenAI employees heading to Europe this summer with fresh wealth — as context for why activists will be flush and aggressive.
Kara argues The View's J.D. Vance interview was the best political interview she's seen — more effective than any network news appearance. They were fair, pushed back appropriately, and created a genuine viral moment. The one killer question they missed: 'What would you do differently from Trump?'
Snap has spent $3.5 billion on Specs hardware over a decade — about a third of its adjusted EBITDA per year — with no real return. The core business has $6B in revenue growing 10% and $1B in subscription revenue growing 60%. Scott predicts an activist will take 5-10% of the company in the next 3 months and force a spin-off or shutdown of Specs.
Snap has spent $3.5 billion over the past decade on Specs hardware, representing roughly a third of adjusted EBITDA annually, with no meaningful return.
Snap has 1 billion monthly active users and is one of only 4 scaled social networks, giving its core platform significant strategic value.
Snap has over $6 billion in annual revenue still growing 10% per year, with subscription revenue of $1 billion growing 60% per year — making its core business attractive despite the Specs distraction.
If Snap achieved Reddit's forward revenue multiples, it would be worth 3.5 times its current market cap, suggesting significant undervaluation of its core business.
Despite strong download numbers, PropGPT could not push past $1,000–$2,000 MRR due to poor product retention.
After their rebuilt app launched, Eyal and Yali hit $30,000 MRR in just 10 weeks.
PropGPT achieves a 48% conversion rate from app download to free trial sign-up.
For every user who downloads PropGPT, Eyal and Yali generate approximately $3.30 in revenue.
Before the rebuild, PropGPT had a 45% download-to-trial rate but only 13% trial-to-paid conversion, revealing a product quality problem.
PropGPT peaked at $40,000 MRR and 2,000 downloads in a single day during the NBA playoffs campaign.
A single viral influencer video with 600,000 views drove PropGPT's ARR from approximately $8K to $38K in about 3 days.
PropGPT runs at roughly 50% profit margins after accounting for marketing, data APIs, hosting, and tooling costs.
PropGPT spends approximately $10,000 per month on influencer marketing.
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