Snapchat goes public for the first time! Or rather, a picture is worth a 1000 words.
If we are to accept this statement as true; what then should we think of Snapchat’s financial picture?
Snapchat has plans to IPO this Thursday. Although the final numbers aren’t in; they are expected to price at a higher range of $17-18/ per share. That gives the social media giant a valuation of about 23 Billion Dollars (200 million share count). Which means they will be trading at 23x sales on day 1! To be clear, none of the last two statements contained typos, 23 BILLION/ 23x sales!
How Does the Company make Money?
In 2015 the company booked ad revenues of over 400 million and is set to do about 2 Billion in the upcoming year. While the company has yet to turn a profit; my buddy Jim Cramer thinks young companies should be judged by revenue and NOT earnings growth?
With all of that said; what are you plans?
Will you Invest, Trade or stay on the sidelines when the stock market gets Snapped on Thursday?
Tina Lashley holds a Bachelor of Arts in Forensic Psychology and a Master's of Science in Mental Health Counseling and has been a stock market participant for over a decade. Currently a Full-Time Trader and Blogger of all things financial.