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Snap Jumps in Debut After App Maker Raises $3.4B in IPO

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Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#31

Post by jonknee »

jedberg wrote: post #26
maxerickson wrote: post #10

Earlier quoted context omitted.

Facebook's market debut showed that Facebook did an excellent job controlling and pricing the IPO. Banks complaining -> Facebook and insiders won. This debut just shows that Snapchat wasn't in the driver's seat. Major holders are still mega wealthy though.

> Major holders are still mega wealthy though. EDIT: I was wrong, that's just what they are selling today, not the total value of their shares. In which case, good for them! It actually surprised me how little the founders got. Their shares are worth about $400M each. Certainly nothing to sneeze at, but usually when you're the cofounder of a 24 billion dollar company, you're a billionaire. :)

That's because they are keeping most of their shares:

http://www.cnbc.com/2017/03/02/snap-ipo-what-evan-spiegel-bo...

> According to Snap's latest S-1 filing with the SEC from Feb. 27, Spiegel and Murphy plan to sell 16 million shares each on Thursday. The company opened at $24, after it priced its public offering at $17 a share. It's just a small fraction of the number of shares the co-founders own in Snap Inc. Both men will still have 97,164,485 after Thursday's sale.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#32

Post by xienze »

DougN7 wrote: post #28
xienze wrote: post #11

Earlier quoted context omitted.

Well the major difference between the two is that Facebook can engage grandma as well as junior. It has broad cross-generational appeal. The whole point of Snapchat is "mom and dad don't use it" which means they're beholden to the whims of a very young audience. Which I guess is good, since young people aren't known to move on to the next big thing at the drop of a hat.

> since young people aren't known to move on to the next big thing at the drop of a hat. I'm assuming that was said with a whole lot of sarcasm? In my opinion, that will be the death of Snap - something else new and shiny will come along in a year or two and Snap will be a ghost town.

Yes, plenty of sarcasm.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#33

Post by maxerickson »

ryanmerket wrote: post #19
maxerickson wrote: post #12

Earlier quoted context omitted.

It was a glowing success for Facebook!

Is that why they sued NASDAQ?

$1.4 billion pop on Snap publicly traded shares.

$30 million lawsuit settlement awarded to Facebook.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#34

Post by linuxkerneldev »

This $27.8 billion dollar valuation tells me that somewhere along the line, my job and lifestyle have caused me to detach from a significant chunk of society. I've never used Snap or their platform. I don't even really know what the benefit of their service. I am curious if I'm in the minority or if there's lots of developers like me who aren't able to comprehend these valuations.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#35

Post by Emc2fma »

sgwealti wrote: post #22

I'm a light snapchat user (send/receive ~100 snaps/week and post to my story every 3-4 days) and I have a question about its value as an advertising platform. I always skip the ads, and I don't know anyone else who uses snapchat who does't immediately skip the ads. When I do this, is it counted as an impression? I can't imagine advertisers would be happy to know that the ads can be skipped. Also I never use the Disco…

From what I remember, those ads make up a small % of their revenue. Most of it is sponsored content, discovery channels, etc.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#36

Post by chillydawg »

DougN7 wrote: post #25
jonknee wrote: post #6

Earlier quoted context omitted.

Considering it went smoothly it doesn't remind me of Facebook's IPO at all. Twitter should be all the evidence you need of how hard it is to succeed selling advertising to a big audience. Snap might crush it, but I would give them a few earnings reports before comparing them to anyone.

Groupon was also similar if memory serves. My prediction is Snap will be the Myspace of 10 years from now.

Groupon was a totally different business. Network effect didn't really add anything or give them lock in. Customers and businesses would go wherever prices were lowest. It was always doomed, really.

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#37

Post by elsewhen »

michaelbuckbee wrote: post #24
doc_holliday wrote: post #3

I know that the Snapchat platform is worth something, it has high engagement and adoption of 18-24 year old age segment, and that is worth a lot in terms of attention and advertising $s. However, this just feels completely out of proportion to earnings and downside does not seem priced in. Willing to be proved wrong of course, but especially seeing as they are non voting shares, I cannot understand this pricing.

The hard part with these things is that in some ways progress and growth is non-linear. So Snap has (by all accounts) done a masterful job of launching their first hardware product: https://www.spectacles.com/ How do you value that? I'm of the opinion that AR style glasses are the technology that will be the next tech wave post mobile phones (FB buying Oculus and Google pushing so much money on MagicLeap is explained…

spectacles are record-only at the moment without any viewing for the wearer. adding user-viewing is at least one order of magnitude more difficult than the current device. is there any evidence that spectacles will be transitioned into AR?

Re: Snap Jumps in Debut After App Maker Raises $3.4B in IPO

#39

Post by godzillabrennus »

linuxkerneldev wrote: post #34

This $27.8 billion dollar valuation tells me that somewhere along the line, my job and lifestyle have caused me to detach from a significant chunk of society. I've never used Snap or their platform. I don't even really know what the benefit of their service. I am curious if I'm in the minority or if there's lots of developers like me who aren't able to comprehend these valuations.

You are definitely not alone. The Snap product has been geared toward younger people as Facebook once positioned itself. Investors are betting that once the product and audience mature there will be huge payouts like they saw with Facebook.

There is a big risk here though. Twitter has crashed and burned when compared to Facebook.

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