Analyst: Every Single One Of Snap's Problems Are 'Self-Inflected'

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Snap Inc SNAP's woes within the social media space are due to management's inability to properly manage the company, at least according to James Cakmak, an analyst with Monness, Crespi, Hardt.

Snap's most recent earnings report was frustrating because it showed management isn't "doubling down" resources where it has strengths, Cakmak explained during CNBC's "Squawk on the Street" segment on Monday. For example, Snap is ahead of Facebook Inc FB in terms of content and does offer a compelling user experience through augmented reality features like the dancing hot dog.

See Also: Oh, Snap! Sell-Side Sentiment Thuds As Q2 Earnings Disappoint

However, instead of leveraging its advantages in these areas Snap isn't bringing in new users and simultaneously it isn't educating existing users about other features like search and maps. In fact, the analyst is willing to give Snap zero leeway in terms of chalking up its poor performance to merely struggling to compete with the industry titan, Facebook.

"One hundred percent of their problems is self inflicted -- if the users are there and they aren't monetizing by definition it's on them."

The same logic also applies to Twitter Inc TWTR, the analyst added. Similarly, Twitter has many strengths in its business but instead it is trying to be "everything for everyone."

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Posted In: Analyst ColorCNBCAnalyst RatingsTechMediaJames CakmakSnapChatsocial mediaSquawk on the Street
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