Snapchat files for $3 billion IPO
The revolutionary social media platform Snapchat has made its mark on both the tech and social scene. Five years after launching, the company has announced it is going public. The IPO is rumored to be valued at $3 billion.
Some are interested by the fact that Snapchat has actually failed to make a profit this past year. Like its social media sibling, Twitter was failing to make a profit when it went public. Snapchat, which has transitioned to parent company ‘Snap,’ will be required to really sell itself to interest potential investors. They claim that over 158 million users are on the app daily, with over 2.5 billion snaps sent.
Snap has faced its fair share of competition, in particular Instagram’s replica of the idea of Snapchat stories on its own app (Instagram stories). Imitation appears to be the sincerest form of flattery - or destruction. With Snap’s revenue falling year after year, the competition becomes stronger.
It will be interesting to see whether Snap can pull off a $3 billion IPO with a lack of proven track record to back it up. Their financial history does not necessarily paint the picture of sustainability. Rumors have it Snap is looking to move into new products, such as the Google-glass inspired ‘Spectacles.’ These glasses-camera hybrid provide the wearer with the option to record video on the spot and broadcast from the app.
Hopefully product ideas like the Spectacles will be enough to interest investors. Many eager observers will be waiting to see how the company does, while continuing to refresh their own Snapchat feed.