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Snapchat Seeks to Raise as Much as $4B in IPO

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Re: Snapchat Seeks to Raise as Much as $4B in IPO

#171

Post by mrep »

samfisher83 wrote: post #77
adamnemecek wrote: post #6

Earlier quoted context omitted.

They have captured an important segment of the market (12-2x years olds). I also think that people In this age group find it a ton more engaging than the alternatives.

FB really made it when the captured the old people. The issue is the the 12-20 years are quite mercurial. 15 years ago it was AIM,MSN, Yahoo chat, then myspace, then facebook. Now its snap chat and instagram. Its hard to keep the market since when you get friend request from Mom or Dad do you really want to be in that social network anymore?

> The issue is the the 12-20 years are quite mercurial.

I don't think we are mercurial but that we have less experience and therefore are much more willing to try new things. Snapchat is way better as an outlet to post more regular things you are doing to your friends because it is ephemeral.

Why? Because we all look back and see all the stupid stuff we posted when we were younger. The only reason I haven't deleted my facebook to delete all of that old stuff is because Facebook's other offerings are pretty good. While I hardly know anyone that posts regularly to facebook anymore, almost everyone uses facebook messenger and groups to communicate in isolated groups.

Snapchat has been blowing up because it fills that niche of "I want to post more updates about my life without really having to worry about how those updates will be interpreted in the future".

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#172

Post by WhitneyLand »

AndrewKemendo wrote: post #29
serg_chernata wrote: post #2

When a company like Uber is raising insane amounts of money I think to myself - "ok, they're working on vehicle automation and other ambitious projects, it makes sense". When a company like snapchat is looking for 4B in addition to existing funding I am left completely dumbfounded. Can someone please explain why they would need this much cash?

The engineering community is sleeping on Snapchat, but shouldn't be. My life is AR. I'm the CEO for an AR company, I speak write and live and breathe all things AR. Snapchat is poised to be the most important AR company around for several reasons. 1. They have a MASSIVE userbase that is comfortable with sharing their lives 2. That userbase has already shown an interest in AR - and yes whether you like it or not their…

Andrew I think you're too optimistic about spectacles given no one has even proven it's a viable market, let alone that Snapchat will have a successful implementation.

What's your best guess of how many pair will sell through to actual customers?

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#173

Post by b2600 »

beambot wrote: post #134
simooooo wrote: post #132

Earlier quoted context omitted.

You're trying to convince yourself very hard, as you're all about AR. But nobody will wear those dumb glasses.

Famous last words. Reminds me of the old adage: "640k of memory is all that anybody with a computer would ever need." I already know a lot of younger folks that are pumped about the Snapchat glasses... (I'm not saying you're wrong... I just wouldn't make such steadfast predictions about the future either. But then again, I don't understand SnapChat and am not their target audience.)

No, young people will not stand in line to buy or wear those glasses. Snap chat is very popular. However, the current user base will outgrow it and those younger will have something else. Better get that 4B while they can. It doesn't have the roots or staying power of a Facebook or Twitter (I know Twitter isn't making money).

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#174

Post by eternalban »

capkutay wrote: post #38
boomzilla wrote: post #35

Earlier quoted context omitted.

And how will they make money? Selling ads in the AR world?

How do facebook and Google make money? Selling ads in social network and search land. Having an enormous, religiously active user base has proven time and time again to be a huge cash cow.

The fairy ad business model.

Don't know about Facebook (never been) but I keep hearing about this fabled Google Ad business and honestly, not only I can't recall the last time I even noticed one, needless to say have never even clicked on one. Some interested party wants to keep these surveillance cum social networks afloat and the fairy ad business model and overblown evaluations and VC cash is the front for funding them.

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#175

Post by mrep »

artursapek wrote: post #123
oneplane wrote: post #106

It's 1999 all over again. Welcome to the .com bubble 2.0.

Can't wait to buy Snapchat puts

25-35 billion dollar valuation, and Facebook started at a 100 billion and is now at 373 billion.

Is there revenue/profit going to blow up? I have no idea but the thought that it could become the next Facebook will probably cause the IPO to pop.

I would probably wait for some more concrete data before you invest a lot of money on it as I can see it being equally likely that it will become the next Facebook or the next Twitter.

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#176

Post by WhitneyLand »

increment_i wrote: post #113
AndrewKemendo wrote: post #29

Earlier quoted context omitted.

The engineering community is sleeping on Snapchat, but shouldn't be. My life is AR. I'm the CEO for an AR company, I speak write and live and breathe all things AR. Snapchat is poised to be the most important AR company around for several reasons. 1. They have a MASSIVE userbase that is comfortable with sharing their lives 2. That userbase has already shown an interest in AR - and yes whether you like it or not their…

I'm inclined to agree. I was very bearish on Snapchat around the time they rejected the Facebook offer. But more than any other app right now, Snapchat is killing it with users. This is a what a product users love looks like. On top of that, I've been consistently impressed with their technological prowess, even if the AR component seems somewhat inconsequential to me right now. You better believe Snapchat is gunning…

>I've been consistently impressed with their technological prowess

Like what, the glasses or the apps? Would be interested to learn what they've done so well with on the software side.

I attribute their success to product design and knowing their market, but hadn't really thought of it as technical acumen.

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#177

Post by nateburke »

adamnemecek wrote: post #52
CN7R wrote: post #47

Earlier quoted context omitted.

IMO, Google glasses were an obtrusive form of eyewear with limited AR capabilities—with a price tag of $1500. Spectacles are $130.

You are right they are quite a bit cheaper but they are just as obtrusive. I think that glasses (esp. dioptric) are fundamentally a part of your identity and I think that most people fundamentally hate associating themselves with a company not to come across as a 'fanboys'. Like wearing the snapchat glasses projects a certain type of persona which I think most people might prefer not to project. I think that they sho…

My initial impression upon seeing the spectacles was that they had two cameras. They don't, but the impression points to a key design choice that was, IMHO, fatally absent from Google glass: attempted symmetry.

I think that people will be more likely to wear the spectacles for this reason--they can actually pass for a pair of somewhat ostentatious sunglasses to an unknowing observer because of their near-symmetry, vs. Google glass, the mere shape of which screamed "BORG!"

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#178

Post by flukus »

beambot wrote: post #152
untog wrote: post #137

Earlier quoted context omitted.

You can trot out that 640k comment to sell any piece of technology, it doesn't make it true. I could have said the same about Google Glass.

Indeed you could. And sometimes you'd be right; other times you'd be dead wrong. If you could be right even half the time, you'd be rich as all get out. Which is why I would suggest: Don't make overreaching bold predictions (or become an investor).

I'm right way more than half the time. How do I get rich predicting $newTech will fail?

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#179

Post by sanowski »

rufb wrote: post #168
sysexit wrote: post #166

Earlier quoted context omitted.

So 4B for a selling stickers business model?

Kakao's business model history is actually rather fascinating, and they keep grabbing sizeable market shares in unlikely or previously inexpressive markets to great success. > In 2012, KakaoTalk's $42 million revenue is broken down to 67.5% ($31.1M) gaming, 26.2% ($12.1M) advertising, and 6.3% ($2.8M) emoticon sales. [1] [1] https://en.wikipedia.org/wiki/KakaoTalk#Company_Business_Mod...

$200MM rev is crumbs when you're taking billions. I don't think this provides a good example of how it can work.

Re: Snapchat Seeks to Raise as Much as $4B in IPO

#180

Post by flukus »

capkutay wrote: post #38
boomzilla wrote: post #35

Earlier quoted context omitted.

And how will they make money? Selling ads in the AR world?

How do facebook and Google make money? Selling ads in social network and search land. Having an enormous, religiously active user base has proven time and time again to be a huge cash cow.

Google ads are something we only see when searching on google. They're easy to tolerate.

No one will put up with virtual ads in AR.

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