Snap Inc., an American multinational technology and social media company, founded on September 16, 2011 by Evan Spiegel and Bobby Murphy and based in Venice, Los Angeles has now gone public.
Recall that Snapchat last year, registered Snapchat Inc. as a company with the hope of venturing into other lines of products – example being the virtual reality (snapchat spectacles) – other than just social media.
According to a recent IPO by Evan Spiegel, the company has been said to be worth USD24 billion.
The company has priced its shares at $17 ahead of Thursday’s listing on the US stock market. The flotation values the business at $24bn, although Snap has never made a profit. This IPO is expected to turn the company’s founders Evan Spiegel and Bobby Murphy into multi-billionaires.
The shares, which were more than ten times oversubscribed, will list on the New York Stock Exchange. It is worthy to note that investors at the flotation will not have voting rights.
Now, guys, let’s put up our investor cap and see if we would deem it fit to put our money into snapchat shares.
So given the way Facebook is hell bent on putting snapchat in the ground, and considering Facebook’s strength and resources which snapchat cannot measure up to, would you trust them with your money and live your life throughput with the fear that one day, they might be no more, or be gone really deep in the ground?
Snapchat had said that last two year’s revenues would be up to five times what was generated last year. And in the year of the IPO in 2017, revenues should be more that ten times what was generated in 2016.
With the figures thrown around by Snapchat about revenue profile, it is understandable why they think a $25 billion IPO was reasonable. They only got it reduced by $1billion.