They've got money in the bank for another year and a half or so at that rate so it'll go on a while at least.

What kids? Kids with credit cards or kids where most purchases are made by parents and therefore hard to link back to ads shown on SnapChat?

I'm in my 30's and don't know too many people that use SnapChat... so when people say "young kids use SnapChat" I'm not sure if that means 13-18 year olds or 18-29 year olds or something.

This is like that Silicon Valley episode, where the only users are underage who are gonna get you fined per use.

That's basically SNAP's audience. Young kids who you cannot monetize, and obviously cannot build billion dollar companies on.

Maybe once they grow up they will be valuable, but (a) can SNAP wait that long and (b) will those users stick to SNAP once they've grown up?

My data is anecdotal, but Snapchat is hemorrhaging "kids" to Instagram.

Well, I wouldn't be so sure. When SNAP had their first big miss a few quarters ago, I asked my 13-year-old (who I noticed hadn't been using Snapchat as much as he used to) about his usage. His response was that "Dad, no one uses Snapchat anymore!" (It's "all about insta", according to him.)

While it is certainly anecdotal, it also fits both the data (the declining growth and difficulties monetizing) and the general perception (that Instagram stories obviated Snapchat). But then again, if my son were a kingmaker, Funky Karts would be a unicorn -- so take this for what it is!

It's just a convention.