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

bloomberg.com

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

#71

Post by [deleted] »

anon543210 wrote: post #51
niftich wrote: post #40

I'm surprised (rather, disappointed) that the article doesn't make any comparisons to Facebook's IPO. For today's 14-to-25-year-olds, Snapchat is the new Facebook, in terms of user engagement, market penetration, mindshare -- so it stands to reason in terms of valuation it would be too. There are some important differences, of course. Facebook owns multiple properties that mount competition to Snap Inc: Instagram, Me…

I disagree in the similarities of Facebook. Snapchat is like twitter but worse. Because it's anonymous and not associated with real names, they don't have an actual relationship graph, unlike twitter they don't have an interest graph. All they really have is your location. Everything is ephemeral so it's going to be even harder to figure out what type of advertising they should actually target. Also we don't know whe…

[deleted]

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

#72

Post by jasonwilk »

devilsavocado wrote: post #37
cblock811 wrote: post #3

I have yet to speak with anyone who thinks Snapchat's valuation is realistic and that their business model will sustain them. When I see this I just think of Twitter all over again. I would love to hear arguments supporting Snapchat though.

This is my takeaway from Kleiner Perkins Caufield & Byers 2016 internet trends presentation. http://www.kpcb.com/internet-trends Some I agree with, some I think is hyperbole. Snapchat's Ads are effective. More effective than anything else on the internet or other apps. They are authentic, entertaining, in-context and brief. They follow the 3Vs: Vertical (Made for Mobiles) / Video (Great Way to Tell Story) / Viewing (…

You should add a 4th V which is very important to why advertisers are liking SnapChat, which is Volume. SnapChat ads naturally have sound on and users expect it to be that way; another element to its similarities to television advertising.

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

#73

Post by cloudjacker »

boomzilla wrote: post #35
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…

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

Snapchat already makes like 700 million in revenue. (edit: jk they hope to make 300 million and then hope to do much more than that by 2017)

The real question is "do all these companies buying ads actually make a return on investment" and the answer is DOESN'T MATTER! Lots of ad dollars still to move away from older methods into digital media lol

Maybe there will be a Netflix documentary in the year 2027 about what caused the burst of the collateralized ad market and financial crises of the roaring 20s, with the undertone of "why didn't anybody see this coming"

but in 2017, that absolutely does not matter.

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

#74

Post by babesh »

There's a sales technique where the first person to state a value causes other people to pick values around it. So Snapchat struck first and says that they are worth 40 billion. Minions listen to that and think that 35 billion would be a bargain.

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

#75

Post by apsec112 »

sedachv wrote: post #68
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…

> Their Spectacles release has the potential to build the largest real world image dataset on the planet - something needed (for reasons I won't go into) for AR everywhere. This is hn, please explain the reasons. Otherwise your post sounds like Donald Trump - "They have AR. They have the best AR!"

"Please avoid introducing classic flamewar topics unless you have something genuinely new to say about them."

(I'd also like to know more details, but bringing up Trump can only lead to doom)

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

#76

Post by rawnlq »

tnecniv wrote: post #56
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…

Their filters do SLAM?

Not in the robotics sense where you map out a hallway of a building or something. But it does map facial landmarks very well (and I suppose that will also give you localization relative to the face).

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

#77

Post by samfisher83 »

adamnemecek wrote: post #6
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?

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?

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

#79

Post by yolesaber »

knz wrote: post #69
yolesaber wrote: post #62

Earlier quoted context omitted.

Man seeing those peoples faces plastered in ads is positively dystopic.

My initial reaction was the same but we already have people walking around wearing or carrying items with corporate branding (sports apparel, well known clothing brands, iPhones etc)

True, I'm not opposed to branding or designer wear, it's just something about seeing a face just covered in them and then sharing it...

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

#80

Post by sahara »

cloudjacker wrote: post #73
boomzilla wrote: post #35

Earlier quoted context omitted.

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

Snapchat already makes like 700 million in revenue. (edit: jk they hope to make 300 million and then hope to do much more than that by 2017) The real question is "do all these companies buying ads actually make a return on investment" and the answer is DOESN'T MATTER! Lots of ad dollars still to move away from older methods into digital media lol Maybe there will be a Netflix documentary in the year 2027 about what c…

I mostly agree with you, but you're off by about an order of magnitude (±0.5) on Snap's revenue numbers. They did about $60 million in 2015, and were projecting 4x that for this year.

Source: http://www.bloomberg.com/news/articles/2016-05-26/snapchat-r...

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