Web: Why Snapchat's Planned $25 Billion IPO May Be Out of Touch

November 2016 by: From The Web

Snapchat has filed to go public, which could happen as early as March, and it looks like it will have a whopping valuation of up to $25 billion, the biggest technology initial public offering since Alibaba in 2014 at $21.8 billion.

Tech industry insiders, investors and journalists have been watching and speculating on Snapchat's moves for quite some time.

On the one hand, there are those who saw the shifting demographics of young people using Snapchat and predicted the fall of Facebook to this rising tide, which others think is crazy. On the other hand, there are those who scratched their heads in disbelief when Snapchat turned down Facebook's $3 billion merger offer in 2013.

To Snapchat's credit, it has become a dominant platform for high school and college age users all the way through to their mid-20s, and the company is expected to post $366.7 million in revenue this year.

Emarketer estimated Snapchat's revenue will rise to nearly $1 billion next year.

Yet, Snapchat has 100 million daily active users, which suggests that estimate could be off.


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