Snapchat is working on IPO
Snapchat, the photo sharing social media service, seems prepared to capitalize on their growth. A report in the Wall Street Journal indicates that the company is preparing for an initial public offering (IPO) in March 2017 at a valuation of $25 billion.
Snapchat has become elevated to the same plane as other social media behemoths like Twitter, Facebook and Instagram. The daily active user base of Snapchat is continuing to grow, and Snapchat has been constantly updating its features and expanding its reach.
Snap Inc. is working on an initial public offering that could make the fast-growing virtual-messaging company one of the highest-profile share debuts in years and possibly signaling a turnaround in the new-issue market.
Snapchat is seen as such a valuable commodity because of its great capability with advertisers. This year alone, the app is expected to generate $366.69 million in ad revenue. Next year, that figure is expected to more than double to $935.46 million.
If Snap, best known for allowing users to send disappearing messages from their smartphones, moves forward as planned, it would be the biggest company to go public on a U.S. exchange since 2014. That is when Chinese e-commerce company Alibaba Group Holding Ltd. made its debut at a $168 billion valuation.