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I can't argue with the logic of the talk show guest, (who seems very good at her job!)

They are dealing with economy of scale. If facebook+google have 90% ad penetration then snap must displace facebook.

Displacing might not be the actual word. You could, for example, say that the digital ad market will double in 5 years, and Snapchat will capture all of that additional revenue, becoming bigger than FB and Google combined.

It wouldn't be displacing them per se, they'd still sell the same $ to the same companies.

Will that happen? My guess would be on no. I don't think there's room for a 3rd large player in the digital ads world, Twitter tried to be it, but failed. But hey, maybe Snap is able to do it (but I doubt it).

It displaces them in the relevant metric (ad penetration), so I think it still fits fine in this context. It would be different if the original commentator was arguing that Snap is going to displace FB/Google's current revenue.

So might function as a useful hedge on FB and Google stock.

I hadn't thought of that, but it would explain the runaway valuation more than any other theory I've heard.

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