Snapchat Preps $25 Billion IPO

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And this week's award for insanely idiotic valuation goes to Snapchat. The company is reportedly planning an IPO for March that could value the company at $25 billion. That's billion...with a B. :(

Snap, Inc. is reportedly preparing an IPO that will value the company formerly known as Snapchat at around $25 billion. The social darling is shooting for a March offering, The Wall Street Journal reports, citing sources. A company representative declined to comment on the report, on Thursday.
 
Steve said:
$25 billion
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As we've seen, their platform can be easy duplicated by their rivals. The only proprietary tech they have is facial mapping, which isn't being used in a way to command 25B.

I just need 250M for my idea and I'm all set. lol
 
Skripka said:
Oh but they do.....they're making real money hand over fist in these ridiculous gambles on phantom assets of negligible actual value.
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You get it, but nobody who can stop it from happening cares, because everyone involved is getting ultra rich.

Everyone that is, except for the poor small-time investor who gets in late in the game.
 
The creepy question is: What data (beyond silly AR augmented selfies) is Snapchat collecting about its users to be worth anywhere near 25B?
 
25 billion huh and for what oh yea Snapchat. LMAO you just can't make this shit up, oh wait it's Wallstreet USA we are talking about.
 
Snapchat is useless and broken. Tried using it recently on my Nexus 6 and the app crashed when trying to add text to a post.

nvgrim said:
Cant wait to short this stock when it becomes publicly traded because its going to fall like a rock just like twitters stock.
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Careful with that right out of the gate. There's funders with deep pockets in things like this that need to increase share price, then unload their shares to the public at inflated values. Once that's done, of course, short the POS. Look at GoPro for a good example.
 
WorldExclusive said:
As we've seen, their platform can be easy duplicated by their rivals. The only proprietary tech they have is facial mapping, which isn't being used in a way to command 25B.

I just need 250M for my idea and I'm all set. lol
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Duplicating a platform is meaningless. Someone could make a functionally identical Facebook, Google, whatever - and it'll fail because of so many other factors.

Snapchat has first mover advantage, massive name recognition inertia, and happened in the right place at the right time. No one is likely to catch them in their market segment.
 
nvgrim said:
Cant wait to short this stock when it becomes publicly traded because its going to fall like a rock just like twitters stock.
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Almost all tech stocks drop on day 1 when they IPO
 
Maybe they are going to use extortion for all the nudie pics people take. Pay us or we make them public!
 
So you *can* put a price on dick pics and n00ds. Great.

What's their ticker going to be? NIPSLIP ?
 
btw, the younger crowd (teens to 20 somethings) is a coveted market - which snapchat has captured, thats where the value really is - being able to successfully advertise to them - which they have proven to be able to do.
 
VIC-20 said:
The creepy question is: What data (beyond silly AR augmented selfies) is Snapchat collecting about its users to be worth anywhere near 25B?
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Probably has more to do with potential ad revenue. I dont think snapchat has any ads, but the fact that they have millions upon millions of users means the potential for ad revenue is there.
 
My only hangup with Snapchat is "why?" I don't understand what Snapchat offers that group texting or Instagram don't cover.
 
nysmo said:
Probably has more to do with potential ad revenue. I dont think snapchat has any ads, but the fact that they have millions upon millions of users means the potential for ad revenue is there.
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Yes. There was also "potential" with Twitter, and it's getting crushed. The valuations of a lot of these tech companies is back to like it's 1999.
 
Gweenz said:
You get it, but nobody who can stop it from happening cares, because everyone involved is getting ultra rich.

Everyone that is, except for the poor small-time investor who gets in late in the game.
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Exactly... This types of stocks then become insidious in the funds available in 401k s for example. I know upon checking prospectuses on the funds i have acesss to they are everywhere... There is always a tech part to everything... Many of them about 50% of the fund.
 
These are good old 80s pump and dump schemes.. Its only the dump part takes longer and its made to look more complex.
 
HockeyJon said:
Yes. There was also "potential" with Twitter, and it's getting crushed. The valuations of a lot of these tech companies is back to like it's 1999.
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Yeah it's ridiculous but nobody wants to miss out on a potential gravy train if it turns out to be a success. Anyone who buys stock in a company like snapchat is doing it because they wished they bought stock in apple or google back in the day.
 
DPI said:
Duplicating a platform is meaningless. Someone could make a functionally identical Facebook, Google, whatever - and it'll fail because of so many other factors.

Snapchat has first mover advantage, massive name recognition inertia, and happened in the right place at the right time. No one is likely to catch them in their market segment.
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Not really, the IM market has already shifted several times. Snapchat is more of a last mover than a first mover. Each time leaving the previous leader abandoned. Look at ICQ, AIM, MSN Messenger, BBM, Skype, Google's various attempts. No one seems to be able to stay on top for long. Fundamentally Snapchat doesn't bring anything novel or patentable to the market. IM clients are not hard to make so it's an ultra competitve market, you falter for a second and someone else scoops up your users. And without users how are you going to make money off advertising? Someone else will just make a slightly better IM client and steal away their market share. Marketing is probably more important than the actual product. It keeps happening, over and over and over. In a few years WhatsApp and Snapchat will be the next ones to be bulldozed under.
 
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