Most everyone is familiar with Snapchat, whether they use the social media app or not. It’s one of the most popular networks among other names like Facebook and Twitter. Do you remember when Facebook first went public with an IPO? What about Twitter? Both these social media giants have fared well, so what do you think about the news about Snapchat’s IPO? If the stock performs anything like its counterparts, it should take off strong, drop back a little and then start picking up speed again.
Company valuation is important when it comes to stocks and investing. While Snapchat is a big social media giant, what do you know about the actual business? If you look at the specifics, the company valuation target is approximately 30 billion. I’d say it’s doing rather well, wouldn’t you? Of course, that’s a target and not reality at the moment. What’s also a target is the IPO release, meaning Snapchat shares aren’t yet available on the market.
The latest news about the IPO for Snapchat includes the fact that early 2017 is the target date for the IPO. Early 2017 doesn’t narrow it down well enough though for excited investors, so is there a more specific date? There is, but it’s not set in stone and can only be narrowed down to the nearest month at this point. The earliest you will be able to purchase Snapchat shares is early March.
The Snapchat IPO is getting lots of attention for many reasons. First, this is a huge company, and many investors pay attention to these social media companies that hit the stock market. Second, it’s a new IPO available during a time when there haven’t been as many IPO opportunities for investors. Not to mention, the IPOs for this year in 2016 have been known for not performing very well cumulatively.
Therefore, all eyes are on Snapchat and whether or not it’s going to make a splash like other social media giants have entering the market. With all that hype and knowing that buying shares increases the stock price, you can imagine it’s going to jump out of the gate on the rise. Yet, will that momentum be sustained?
It’s hard to speculate about whether or not Snapchat will perform well in the long run. Many people didn’t think that Facebook would do all that great. For starters, Facebook’s IPO didn’t come during the height of the company’s popularity. Popularity and business are two different things though. We’ll see what happens with the Snapchat IPO.