Snap Inc. Applies for IPO

By

After rampant speculation that the day was coming over the past year or so, Snap Inc., the parent company of social media platform Snapchat, has officially filed for its Independent Public Offering. That filing will commence a 15 day waiting period, after which the tech giant will be able to begin holding meetings with investors. At this point in time, initial projections indicate that Snapchat will be valued around 25 billion dollars. Beginning in March, shares of Snapchat will be available for trade on the New York Stock Exchange under the ticker SNAP.

In conjunction with this filing, Snap Inc. was required to disclose a fair amount of interesting information about its Snapchat platform. For example, the company disclosed revenues of 404.4 million dollars in 2016, an increase of over 50 million from the year before. It also revealed that it housed 158 million daily active users in 2016, representing a thriving social media platform.

Snapchat originated as a simple photo sharing application, the brainchild of 26 year old CEO and co-founder Evan Spiegel. It quickly became popular, and Snap Inc. continued to grow both the features of the app and the reach of the company as a whole. Over time, the app added video capability, new methods of sharing, and a News and Discover section. Snap Inc. also increased its advertising presence and unrolled its first tangible product: Spectacles, special glasses that allow users to record exactly what they are looking at and send it to their friends through the Snapchat app.

Despite all the success that Snapchat has seen, there have been questions about how viable the company will be in the long run. Snapchat largely draws from young people (adolescents, teenagers, and young adults) for its user base, and some wonder if and how it will translate to a larger market. Snap has, it seems, attempted to combat these fears by creating hardware and expanding its presence, as well as defining itself as “a camera company” rather than a social media platform.

This IPO is an unprecedented event, as it is the sale of shares of a very large but very specialized Internet age company. It will be incredibly interesting to see what sort of investors Snap Inc. can draw, and how successful its IPO will be.




Edited by Alicia Young

Contributing Writer

SHARE THIS ARTICLE
Related Articles

Generative AI Expo Launches as Newest Event in the ITEXPO #TECHSUPERSHOW

By: TMCnet News    1/27/2023

Generative AI Expo is the starting point for you research the countless potentially game-changing pillars that may solidify generative AI as THE indis…

Read More

Can Machine Learning Models Help Fight Cybercrime?

By: Contributing Writer    1/25/2023

A machine learning model is a mathematical representation of a system or process that is trained to make predictions or decisions based on data. It is…

Read More

What Are the Risks of Continuous Deployment?

By: Contributing Writer    1/25/2023

Continuous deployment (CD) is a software development practice where code changes are automatically built, tested, and deployed to production without h…

Read More

The Benefits of Implementing a Master Data Management Platform

By: Contributing Writer    1/19/2023

A master data management (MDM) platform is invaluable for any business. By centralizing data into one cohesive system, companies can improve their ope…

Read More

What Is an SBOM and Why Is It Critical for Software Compliance

By: Contributing Writer    1/17/2023

An SBOM, or software bill of materials, is a list of all the components and dependencies that make up a piece of software. This can include things lik…

Read More