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Snapchat has reportedly filed confidentially for its massive IPO

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Re: Snapchat has reportedly filed confidentially for its massive IPO

#41
post #6
post #2

Could someone explain a) Why they need so much money? Don't tell me it's to produce some spectacles b) Why they are worth so much? I get that they have an interesting user base (young people), but they are having a hard time making money, aren't they? That $19b WhatsApp purchase hasn't exactly earned a lot of money yet, has it? It's still a very long bet, especially with Facebook being forbidden to collect the data n…

a) To build an ad business capable of handling $100m of ads. You need massive investments in sales, infrastructure, tools, etc. to build a business like that b) They have one of the fastest growing user bases in the social space, their users spends an astounding amount of time on the app (estimated at 30 minutes per day), and their user base is the most targeted demographic for demographics. Also they have literally…

To your point b... so it's all about bubbles? A race for eyeballs before they disappear to the next "new, cool" thing?

Because advertising isn't working for the people that sell "things." If social networks are supposed to create spending/buying in retail (both online and meatspace) they are not doing a very good job. Google: Retail sales 2016.

Re: Snapchat has reportedly filed confidentially for its massive IPO

#42
post #2

Could someone explain a) Why they need so much money? Don't tell me it's to produce some spectacles b) Why they are worth so much? I get that they have an interesting user base (young people), but they are having a hard time making money, aren't they? That $19b WhatsApp purchase hasn't exactly earned a lot of money yet, has it? It's still a very long bet, especially with Facebook being forbidden to collect the data n…

On a - I have no idea. On b- Not sure if it's worth $25 billion, but I have noticed that it is the "Facebook" for younger generations, and that when they use it, they use it all the time, not just a few times a day like other social media. It's a way to share their lives - in real time - with their friends and followers, and have their friends do the same. (Look at me sounding like an old man!)

That isn't "old man" that is practical thinking. Kids don't have any money!!!!!!!!!!

Re: Snapchat has reportedly filed confidentially for its massive IPO

#43
post #20
post #16

Earlier quoted context omitted.

MAGNIFICENT analysis.

I'm fully aware this is anecdata. But I can tell you I'm not alone on this. I just shared my experience. Sorry.

People dont want to be tagged on snapchat, their audience likes exactly the opposite.

Re: Snapchat has reportedly filed confidentially for its massive IPO

#44
post #14

Maybe I'm alone here, but I love the way Evan and Snapchat, er Snap, communicate as a company. They are incredibly tight lipped, but also very honest and blunt. They've talked about this IPO for years, and made no secret about becoming a camera company.

On the other hand, I find it extremely annoying how Team Snapchat routinely sends elaborately animated pre-prepared snaps that are impossible to make in the official app. Eat your own dogfood, guys!

I agree with you on this one. It feels unfair!

Re: Snapchat has reportedly filed confidentially for its massive IPO

#45

Really interested in learning if Snap is more Facebook or Twitter. This could be a big litmus test for the tech IPO. 2 things I'm very interested in: 1) If the rumors are correct that they are looking to raise 4 Billion at a roughly $40 Billion valuation. If you assume that their absolute pie in the sky max valuation ever is similar to what facebook is now, roughly 340 Billion, then that's not alot of upside for inve…

I wish we could get some visibility as to how many Snapchat users are adult content creators. This is a segment that everyone seems to ignore, but I think we would be surprised to learn its scale and the amount of money flowing through it. It's also probably the group of users which most use Snapcash and driver huge numbers across all metrics.

Re: Snapchat has reportedly filed confidentially for its massive IPO

#47
post #20
post #16

Earlier quoted context omitted.

MAGNIFICENT analysis.

I'm fully aware this is anecdata. But I can tell you I'm not alone on this. I just shared my experience. Sorry.

I'm not sure why you were responded to that way, these are all valid concerns that would stop growth in Snapchat, which an investor should be aware of!

Re: Snapchat has reportedly filed confidentially for its massive IPO

#48
post #12

I'm a professional photographer with about 16K + Instagram followers. I used snapchat to stream behind the scenes photos and videos and retouching tutorials, but that was a black box. Yes, I had comments open and I interacted with my friends and fans, but I couldn't tag anyone, or hashtags, discoverability is a serious issues in that platform. I started using Instagram stories and now I have the same views per snaps…

It definitely sounds like Instagram is a better fit for that. But is that really Snapchat's core use case? There's definitely some overlap in uses, but instagram isn't a complete replacement for Snapchat. And the areas where instagram doesn't cover snapchat, it seems like are snapchat's primary uses.

[deleted]

Re: Snapchat has reportedly filed confidentially for its massive IPO

#49
post #43
post #20

Earlier quoted context omitted.

I'm fully aware this is anecdata. But I can tell you I'm not alone on this. I just shared my experience. Sorry.

People dont want to be tagged on snapchat, their audience likes exactly the opposite.

You are right. The point I'm trying to make is that brands (and some people) wants the opposite. It would be perfect if at least we had some option to allow tagging or something like a business account.

On instagram stories now you even can have a link to an external page!

Re: Snapchat has reportedly filed confidentially for its massive IPO

#50
post #12

I'm a professional photographer with about 16K + Instagram followers. I used snapchat to stream behind the scenes photos and videos and retouching tutorials, but that was a black box. Yes, I had comments open and I interacted with my friends and fans, but I couldn't tag anyone, or hashtags, discoverability is a serious issues in that platform. I started using Instagram stories and now I have the same views per snaps…

This. IMO Snapchat is very hard to use for any kind of business application since it has no discoverability whatsoever.

My wife has 90k+ followers on Instagram and started using Snapchat up to the point where she had 4k+ views a day. When instagram launched the new stories thing she started using it slowly and has pretty much stopped using Snapchat now.

I always told that for her use case Snapchat wasn't a good fit because there is no way other than entering the username or scanning a qr code for her to be found and you have to rely on people not being lazy to add you.

Anyway, I still can't understand why hasn't Snapchat added some sort of search or trending profiles yet.

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