Snapchat ipo, worth $25 billion "may never achieve or maintain profitability."

Baron said:
It's game over for Snapchat. Instagram has already duplicated the disappearing photo/video features of Snapchat in the current version (amongst other features), so it's lights out for Snap unfortunately. They should have taken the $2billion offer from Facebook years ago. By Snap's founders basically giving Facebook the middle finger on the buyout offer, all they did was give Facebook engineers plenty of time to duplicate everything on their own in Instagram.
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Keep in mind the founder owns about 13% of the company so even if it fails he is cashing in on more than 2Billion right now, of course depends on how much of shares he maintains could change that
 
jj90 said:
Oh wait this is ET, where everyone makes a million by lunch.
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...I literally started to salivate after reading this o_O:p

But all tech companies are Overvalued, in my very basic humble (maybe naive) opinion.
Traces of the the crazy go-go 90's blood...still remains in today's tech companies.
 
160 million users who spend 20 to 30 minutes a day on avg. That's a whole lot of time to brainwash people with all sorts of ads and other stuff. 25bil is a steal.... According to the economics of 2000+.

I don't even understand what snap does nor have I ever used its app and probably won't either (I describe myself as being very knowledgeable on the programming and trading side, early 40s but without a Facebook or Twitter account either). I think those valuations are crap and not based on anything product or company related. What I believe I understand is the value of the user base and the power of ad dollars. Look at Facebook. They are nothing without advertisers. Who would pay for WhatsApp if they monetized it? (other than me). And they are spending huge amounts of money to invest in other future proof areas right now.

S2007S said:
Yep worth $25 billion to these stupid fools on wallstreet, not even profitable and losing money hand over fist, yet so many tripping to buy shares....going to be really amusing to see where this fad goes in the next few years.....


Snap officially filed for an IPO on Thursday, and told investors it "may never achieve or maintain profitability."

Snapchat's revenue growth is astounding — and so are its losses. Here are the highlights.

  • Net revenue: $404.48 million in 2016, up from $58.66 million in 2015
  • Net loss: $514.64 million in 2016, wider than $372.89 million in 2015
  • Loss from operations: $520.39 million in 2016, wider than $381.73 million in 2015
  • Usage: 161 million daily active users in the December quarter (60 million daily active users in the United States and Canada)
  • Average revenue per user: $1.05 in the December quarter ($2.15 in North America)
  • Time spent: 25 to 30 minutes a day
  • Head count: 1,859 employees


http://www.cnbc.com/2017/02/02/snap-ipo-s-1-filing.html
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... The same what Facebook did with all the money. Maybe they hire a bunch of AI specialists and voila, you have a new "disrupter" on a grand scale. Facebook is imho a shit concept and people will wake up one day and realize how much time of their lives they wasted on FB. Younger than millenials are already less than excited about FB. Yet FB bought WhatsApp (in Hongkong where I live, life for most would be impossible without WhatsApp,it has one of the world's highest penetration here). FB is very engaged on the AI side as well.

In summary, a shaky base product (imho), and management knows it's temporary, and they are rushing to invest all that money in other areas.

Same could happen with Snap. Who knows. Key will be management vision. Whether they have another Bezos or not

S2007S said:
They knew they were going to gain alot of more traction with investors coming in on the secondary market raising boat loads of money that's why I believe they never sold out to Facebook but like you said Instagram already has introduced disappearing photos and video features that Snapchat has...now all Instagram needs is about 100+ dumb filters so people can play on Instagram instead of Snapchat....I think social media is just completely saturated......let's see how quick Snapchat starts to fade away....those dumb looking spectacles that everyone was running to get are now being forgotten about....did Snapchat think they had a new revenue stream going with those doofy things...maybe for a day or two....let's see what they will do with all that IPO money....and not for nothing but what do 1900 employees do at Snapchat??? Always wondered how many thousands of people are needed to run such tech companies....
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That itself may not be worth much. And I side with you in that I do not see much value in snap's base products. But neither had I in Facebook when they went public. It all comes down to how they employ those funds going forward. I am pretty sure they won't develop more lenses with the billions they can spend.

Baron said:
I think we're saying the opposite. Being a developer of these features is awesome because you get to be creative, and you get the benefits that being associated with a large company brings, etc. but!!!.... at the end of the day you are shielded from the fact that although these features are cool, and although you are busting your ass and doing your job correctly, these features generate no profit for the company because the manpower it takes to create these features exceeds the revenue that the company generates from them, which is why snapchat and companies like it.... makes ZERO MONEY. Sorry, but as much as the Kardashians and all the other goofy celebriclowns want us to believe, mapping a cheetah head to your own faces just isn't worth $25 billion.
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Baron said:
Hey, it's all "free investor money" so who cares, right? Let the foosball tournament begin!
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And all the free fed money...none of this would have been possible without those fed trillions.....
Wonder how long the foosball tournament will last for???
 
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