Social Media Giant Snap Launches Eagerly Watched $3B IPO

Social Media Giant Snap Launches Eagerly Watched $3B IPO

Snap Inc.is valuing the company at up to US$22 billion as it prepares for the tech industry's biggest initial public offering in years.

Having recently rebranded as a camera company, it's quite possible Snap is actually looking to launch a Snapchat camera rather than a phone - and we think this the more likely outcome.

Both Alibaba and Facebook have continued to excel after their IPOs.

Amidst concern from investors, Snap Inc., which would be listed in NYSE under symbol SNAP, has trimmed its valuation to $19.5 - $22.3 billion now from initial $20 - $25 billion. The management team will try to win over investors during their upcoming "roadshow". Then again, it wouldn't be the first social-media company to consider a smartphone (although the Facebook Phone - aka HTC First - was something of a flop). Before the IPO, Twitter's monthly active users had grown in each of the previous three quarters. Currently, the platform boasts 158 million users.

Snap posted a net loss of $514.6 million in 2016, which widened from $372.9 million a year earlier. While a young audience can be a coveted audience for advertisers, investors are anxious about whether Snap can continue to maintain fickle millennial users on its platform. So if Facebook and Twitter was about how many friends and followers you have, Snap was about being selective and focusing on the best friends you have, Spiegel says. "Before Twitter, everybody assumed that users would just keep growing and growing and growing". Valued at the high end of the pricing range disclosed on Thursday, the so-called CEO award could result in a one-time windfall rarely seen since Mark Zuckerberg took Facebook public in 2012.

Mobile profit, revenue climb to top estimates
T-Mobile's business is seemingly on fire and none of the other telecoms are capable of extinguishing the TMUS stock hot streak. Legere also kicked off a new unlimited promotion for the Un-carrier offering two lines of unlimited data for $100.

On the other hand is Amazon, which has consistently sacrificed short-term profits for long-term growth ever since it went public two decades ago.

Snap executives repeatedly drive this point home with stats: Users check Snapchat 18 times a day on average and spend 25-30 minutes in the app.

Another big red flag for Snap Inc is its lack of profitability.

Another concern that investors are having is Snap's ability to grow new users.