Snapchat IPO, Uncategorized

15 things to expect from Snapchat IPO

There are many people in the world that would have used Snapchat in some point of his life. Even if anyone would not have used the Snapchat, he must have heard of it. So, what is Snapchat IPO? Before answering that question let’s understand what is, Snapchat. Snapchat is image messaging application developed the company known as Snap Inc. This app also supports other services like chat, messaging along with image sharing. There are other cool features in this which was introduced much later like the video chatting and my story feature. This app is available on both android and iOS platform. IPO stands for Initial Public Offering. This is one type of public offering in which any company sells its share to investors. This means that you can buy a piece of Snapchat!! This is just a way to transform a privately held company into the public company. Snapchat also organised such IPO on March 2. The market is expected to remain open from 9:30 am to 4 pm. There are many other tech companies that decided to debut on NYSE or Nasdaq.

So, let’s see the 15 things that we could expect from this Snapchat IPO

1. Snapchat will be very careful in this IPO as last time during the Facebook IPO in 2012, there was huge price fall when the market closed. The initial price was about $42 a share but it fell to $38 by the closing of market. 2. There is large expectation from this IPO. As the popularity of Snapchat has increased in the recent year, this IPO is going to attract large number of investor out there. 3. Snapchat is expecting to get more money by this IPO. The increasing popularity of Snapchat is one of the prime reason for this. 4. Snapchat parent company Snap is likely to use this money for acquisition of small companies to further expand their business. This would really mean a huge growth of Snap and we could expect some newer products from that company. 5. The company has been under huge profit last year. According to some sources the company has got the revenue of little less than one billion dollars per year. 6. This public offering will give an insight into the company. It is still unknown that which member holds how much share. So, after this IPO we would come to know about who are the people who hold maximum power. 7. There are few reports about the decrease in the profit of Snapchat. But this is still the rumour and there is no confirmation on this. 8. Snapchat faces a huge competition from Instagram and the popularity of Instagram is increasing everyday. So, this IPO will give the information about what is the actual position of the Snapchat in the market. 9. The main target audience of the Snapchat are the youth. According to many surveys, young people of age around 20-35 are the majority user of the Snapchat. 10. Last year Snapchat declared itself as the camera company not the messaging application. 11. It remains to be seen that what happens to the money that snap will raise from this public offering. There were huge rumours about Snapchat being transformed into the social media platform. 12. According to the IPO filing Snapchat has reports that it has more than 150 million users that uses their app daily. The user sends more than 2 billion snaps everyday. 13. Snapchat makes about 1 dollar off each user per quarter. This is good as it is relatively newer company. 14. The main thing that is worrying Snapchat is net neutrality. The company officials believe that if the rules of net neutrality are changed then mobile service provider could affect the traffic of Snapchat. 15. This IPO will give an idea about what the general public think about the Snapchat as a company. It remains to be seen whether the people see themselves making profit if they invest in this company or not. All these question will be answered in the IPO. Well, Snapchat is surely taking a bold move by going public with their shares. It remains to be seen whether this company has the power to impress the investors or not.