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This year looks like it could signal the return of the major IPO and there’s one company in particular that’s grabbing the headlines.
All eyes are on Snapchat’s parent company Snap Inc ever since it officially filed for an IPO on 2nd February.
The popular photo messaging app’s owners (Snap Inc.) are seeking a valuation of $22 billion. The financial performance of Snap in 2016 is hard to ignore.
- 600% Sales Growth Rate – $404.5 million in 2016 compared to $59 million in 2015
- Advertising Revenue – 98% of Snapchat’s revenue in 2016 came from advertising
- Forecast – Bloomberg projects Snapchat will generate $1.76 billion in revenue by 2018
- Despite the impressive growth rates, Snapchat is still losing money. The 5-year-old company lost $514 million in 2016.
Stay in the loop with regards to this important IPO.
Snapchat is considered to be the top platform amongst the young masses. Here’s why:
- Over 158 million daily active users (accurate for Q4 2016)
- Majority of Snapchat users belong to the ultra-young 18 to 34 age-group
- Average daily usage time is estimated to be almost 30 minutes
The much-hyped IPO is slated to be happening in March. While we cannot predict how it will go or how share prices will perform on the day, one thing is certain: it will be a major trading event.
Sources: fortune.com, marketwatch.com