Snapchat Ipo

Snapchat Is Likely The Most Expensive Tech Ipo Ever

... were highly anticipated events, Snap still comes up on top as the priciest stock. Since Snapchat lost roughly $515 million in 2016 and has yet to turn a profit, the more conventional stock valuation metric, the price-to-earnings ratio, won't hold up. So we'll be measuring how much the companies thought investors would be willing to pay for each dollar of revenue, or the price-to-sales ratio. For Snap, it's a lot. Fortune took a look at some other notable IPOs of tech companies and couldn't find a single one that offered shares at a higher valuation than Snap. The closest: Twitter (twtr). When Twitter went public in 2013, the social media company sought a $14.2 billion valuation. At the time, its sales in the year preceding the offering came in at $316.9 million, meaning that its owners were looking for a valuation of nearly 45 times sales. But even that is about 40% lower than where Snap looks to be pricing its shares. At the rumored $25 billion valuation, Snap's owners and its bankers are looking to sell shares at a sky high 62 times sales. What's more, while Twitter, like Snap, was not profitable ...

Snapchat Ipo Shows Wisdom Beyond Its Years

... lowering drug reduces the risk of heart attacks. Source: Bloomberg. Not Cheap. Snapchat's revenue multiple at its IPO could be higher than other tech companies at the point they went public. Source: Bloomberg Intelligence. Note: Uses potential Snapchat IPO market value of $25 billion and estimated 2017 revenue of up to $1 billion. Too Soon. Analysts have been rolling back their 2017 revenue estimates for Johnson Controls. The company closed its merger with Tyco International in September. Source: Bloomberg. Investors have turned to more esoteric investments as riskier public debt yields drop. Source: Bloomberg Barclays US Corporate High Yield Index. Debt Mask. The remaining European chip makers are much smaller than competitors. Source: Bloomberg. *Qualcomm is in the process of ...

It’s Time To Start Considering Whether To Buy Snapchat At The Ipo

... in app form. It’s truly an App Revolution company. Here’s an article from CBNC about an analyst’s projections that “We are at the tail end of the social media boom. Novelty is giving way to fatigue,” and that Snapchat won’t be worth $1 billion when it’s all said and done. That kind of pessimism made me think of this “Trading With Cody” report I wrote after we bought Facebook soon after it crashed in the immediate weeks following its IPO. “Google’s past illuminates Facebook’s future”. June 27, 2012, by Cody Willard. I remember a couple weeks after Google came public that Barron’s ran a cover article on how Google was doomed to fail and it quoted a couple analysts who said that they’d be interested in buying Google when it was at $10 a share. The stock was at $50 or so at the time. It never went below $50 again. As I wrote the other day when we first started buying Facebook at $26 a share, the same people who are so scared of Facebook’s potential to dominate the next phase of the Internet are probably going to ...

Snapchat Owner Files For Ipo, Seeks $3 Billion

... Court of Appeals for the 8 th Circuit said that Judge Paul Magnuson must review the class certification he approved in November 2015. Under the settlement, Target must establish a $10 million fund. Consumers can claim up to $10,000 if they can document unreimbursed losses. The remaining settlement funds will be divided among consumers who state under oath that they suffered a qualifying loss but don’t have documentation. Those who suffered no monetary loss from the security breach but could face future identity theft issues receive nothing. A Texas man who used debit and credit cards at Target in November and December of 2013 appealed the settlement, saying he would be forced to release Target from liability for any claims he may have if his data is misused in the future. He said customers like him should be represented separately. — Associated Press. Also in Business. ● Chipotle Mexican Grill’s quarterly profit fell 76.5 percent in the fourth quarter, hurt by promotions, higher advertising spending, minimum-wage increases and a spike in costs for avocados. The company reported Thursday that its net income fell to $15.98 million, or 55 cents per share, in the ...

The 6 Biggest Things To Look For In Snap's Ipo Filing This Week

... Snap has been touting its high user engagement (like time spent) in private pitches to analysts and bankers, and the S 1 should signal how much the company plans to tout high engagement vs. user base growth going forward. Life after Millennials: Snapchat is all the rage among young millennial users, but the app is comically frustrating to use for people over 40. If Snap wants to convince Wall Street that it has a bright future beyond the millennial niche, it will need to give a sense of how big its total addressable market can be. Illustration adapted from Bruce Turner/Flickr. Competitors: Snap's S 1 should reveal who it sees as competitors in the industry, a topic that its management has so far talked very little about publicly. The Wall Street Journal reported that Snap has made an effort to not compare itself to Twitter in pitches to investors, which makes sense given how ...

Snapchat Ipo Illustrates Why Twitter Inc Nyse:twtr Stock Is So Valuable

... multiples that we have not seen in 15 years. The only stock to have gotten close in recent memory is Workday Inc (NYSE: WDAY) at a peak of 40 x sales in 2014. Ever since WDAY stock has essentially been dead money, despite trailing 12-month revenue growth of nearly 200% over the same span. In retrospect, Workday’s fundamentals had to catch up with WDAY stock, and that takes a long time when you reach such an absurd multiple. Thus, one could make a strong argument that even if Snapchat can maintain robust growth over the next five years, its stock would still be dead money because of its valuation. The problem is that Snapchat is far more likely to follow the likes of TWTR stock rather than Facebook stock. Snapchat said in its filing that it may never be profitable, and disclosed a net loss of more than $500 million. Perhaps most alarming of all was that Snapchat disclosed daily active user growth of just 7% in its third quarter and “relatively flat” DAU growth in the latter part of its quarter. With just 161 ...

Snap Files For Its Ipo, Revealing Surging Sales Growth And Huge Losses

... by revealing it generates over $400 million in annual sales and has 158 million people using its app on a daily basis. The Los Angeles-based company released the financial details in its filing for an initial public offering on Thursday. The company filed for a $3 billion IPO, though that is a placeholder amount and certain to change as the company sets a price on the deal. In the filing, Snap disclosed that Snapchat has 158 million average daily active users as of the fourth quarter of 2016. It had annual revenue of $404.4 million in 2016, up from $58.6 million in 2015. The IPO filing shows Morgan Stanley, Goldman Sachs, JPMorgan, Deutsche Bank, Barclays, Credit Suisse, and Allen & Company are among the banks working on the share sale. It plans to list its shares on the New York Stock Exchange under the ticker SNAP. Now that its financial statements are public, the company must wait 15 days before holding formal meetings, aka the IPO "roadshow," with investors. Snap is planning to list shares in March, and could fetch a valuation of as much as $25 billion, people familiar with the matter have said. Snapchat's quarterly average daily active users in ...

Snapchat Files For An Ipo

... The company noted that it would like to raise $3 billion in its IPO, but may in fact seek to raise as much as $4 billion, The New York Times reported. Snapchat will list on the NYSE under the ticker symbol SNAP. According to the SEC S 1 filing, Snap’s sales totaled $404.5 million in 2016, with a net loss of $514.6 million. With an average of 158 million people using Snapchat daily and more 2.5 billion Snaps being created each day, Snap used its filing to make a strong case for how it can build on its revenue growth and continue to keep users engaged. Founded by a Stanford dropout, the firm is widely considered an unlikely success story — especially given that it was once written off as an app mostly used for sexualized text messages. But Snapchat found its audience, and a lot of that audience is pretty famous — Kim Kardashian is among its power users. Some have called the firm the “anti-Facebook” in that all of its messages and posts are temporary and are eventually washed away. “In the way that the flashing cursor became the starting point for most products on desktop computers, we believe that ...

5 Things We Learned About Snapchat From Its Ipo

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