Snap Inc.

Discussion in 'Stock Market Forum' started by puru rama, Apr 21, 2017.

  1. puru rama

    puru rama Active Member

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    Snap Inc. is an American multinational technology and social media company, founded on September 16, 2011 by Evan Spiegel and Bobby Murphy and based in Venice, Los Angeles.

    snapchat.jpg

    In January 2017, The Wall Street Journal reported that "people familiar with the matter" stated that Snap Inc. would share 2.5% of the money raised in an upcoming initial public offering (IPO) with the banks managing the IPO. It also reported that after the predicted March 2017 IPO, the two Snap co-founders would hold over "70% of the voting power" in the company, and own around 45% of the total stock.

    We're now just a week away from the highly anticipated Snap, Inc. (NYSE:SNAP) IPO, and it's easy to fear the worst. Most of the reports that you've probably read - including many of those by my fellow Fools -- are blasting the social media upstart as an investment. Snapchat's popular, but mounting losses and monetization challenges make it a risky bet for most portfolios. I won't argue against the low floor, but I think the market's also ignoring the high ceiling. Let's go over a few reasons why Snapchat's parent company may make sense in your portfolio.

    The IPO is unusual in that investors aren't granted voting rights, with Reuters calls "an unprecedented feature that has raised concerns among corporate governance leaders that other high-valuation companies may follow suit and leave investors with little say over company operations." The price values Snap at a little under $24 billion, around the valuation of Google at the time of its IPO but far smaller than Facebook, which was valued at over $81 billion when it debuted, according to snap stock forecast. Facebook, which owns Instagram, announced Tuesday that it would be giving Instagram users the ability to send disappearing photos to a single friend or to a select group of friends, essentially Snap’s core function. Previously, disappearing messages were only a part of Instagram Stories, in photos or videos are visible to all of your followers.
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I have a put here.
     
  3. fireopal

    fireopal Senior Investor

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    Green today and ER due next week so probably more play to come :)
     
  4. longtermbull

    longtermbull Administrator Staff Member

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    Facebook seems determined to kill SnapChat after it failed to buy it a couple of years ago.
     
  5. gowiththeflow

    gowiththeflow Senior Investor

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  6. longtermbull

    longtermbull Administrator Staff Member

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    Rebound continues:-

    [​IMG]
     
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  7. gowiththeflow

    gowiththeflow Senior Investor

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    Dead cat bounce, start of a recovery rally or maybe takeover rumours hitting the market?
     

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