Snapchat Could Become Highly Successful IPO


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Although social media IPOs have not always fared well, the Snapchat platform could represent a shift in initial public offerings.
Snapchat has grown faster than any other social media app, and its millennial demographic is highly engaged with and devoted to its use. Although it’s only gossip and rumors right now, credible sources are saying that Snapchat, and its parent company Snap Inc., could become an IPO company as early as March of 2017. IPO reports of potential value of the company suggest that it could be set as high as $25 billion.
Although other IPO reports and data from tech companies like Twitter have shown that social-media based IPOs can be a hard sell, it isn’t all bad news. Even when a company has failed to have a great quarterly snapshot on the market, like Yahoo, other successful IPO companies will be interested in a potential takeover. IPO data can put necessary pressure on a company to develop revenue strategies for advertising, too.
Another sign Snapchat might be heading towards IPO status? Its recent rebranding to Snap, Inc. Last month, the company announced it would be creating camera-equipped glasses. They’re showing they no longer offer just a single product, which will make them an attractive offering to investors and traders.
Snap, Inc. has indicated that its revenue from ads could reach the $1 billion mark next year. But even more appealing than its revenue is its rarity. Fewer and fewer private sector companies are keeping IPO status in their sights. Evan Spiegel, the founder of Snapchat, has so far refused to sell his company, and unlike other companies like Uber, his business is not taking on projects that pose a risk for people or the company’s finances.
The growing interest in Snapchat as a potential IPO could actually push its value above its current target value, in theory. The advertising revenue of the company combined with the specific timing and conditions of the market could position Snap, Inc. as a major development in the initial public offerings market. Investors and interested parties will have to keep a close eye on Snapchat until next year to see what develops.

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