Snaphat the Latest Social Media Network to Go Public
Snap Inc, the parent company of the Snapchat app, is going to become a publicly traded company as Snap filed for IPO on Thursday, February 3rd 2017. Snapchat is the popular disappearing photo app that is all the rage with business, celebrities, and millennials alike. The app was first promoted as an app for “certified bros” by its CEO Evan Spiegel. Originally, Evan and his co-founders targeted frat friendly publications to get the word out about the app. Snap did settle with an ousted founder, Reggie Brown, who originally came up with the idea of disappearing photos in 2014 for 157.5 million dollars.
Snap filed for a 3 billion dollar IPO, but was seeking a 25 billion market valuation. At the close of today’s bell Snap stock is selling for $169.78 a share with it’s highest selling point at $181.73 and a low of $133.09. Its current market cap is 9.69 billion dollars with a P/E ratio of 18.3.
Snap had a net loss of $514.6 million in 2016 up from $372.9 in the previous year. Snap Inc revenue from 2016 was $404.5 million compared to $345.8 in the previous year. Average revenue per user is $1.05 up $0.31 from the previous year.
The social media platform boasts about 158 million daily users and captures about 2.5 billion snaps a day. Social Media influencers also make more money on this relatively new platform compared to the dynasty platforms like Twitter and Facebook. Snapchat is also more heavily used by iPhone users than android users.
This stock will definitely be one to watch, many social media experts have been watching it closely for the past couple of years. The growth and scope of the platform has lead to closer looks at celebrities, unique insights into big brands, and many “dude bro” moments.