SNAP Stock   a path similar to Facebook Inc (NASDAQ:FB) or Twitter Inc (NYSE:TWTR).

SNAP Stock to Follow the TWTR Route?

SNAP Stock Price 

SNAP Stock   a path similar to Facebook Inc <span data-recalc-dims=(NASDAQ:FB) or Twitter Inc (NYSE:TWTR)." width="300" height="200" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/07/SNAP-Stock-300x200-Small.jpg?resize=300%2C200 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/07/SNAP-Stock-300x200-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />

FOREX INVESTORS BUZZ SNAP Stock   a path similar to Facebook Inc (NASDAQ:FB) or Twitter Inc (NYSE:TWTR).

With the recent Morgan Stanley (NYSE:MS) downgrade, the company is definitely on the back foot and doesn’t appear to be inching closer towards Facebook levels of success. In fact, the SNAP stock IPO price per share was higher when it was initially released than it is today. To sum things up, all is not well in the Snap kingdom.

Twitter Stock vs. Snap Stock 

Ironically, Snap founder and CEO Evan Spiegel deliberately went out of his way to avoid falling into the same pitfall as Twitter when he was preparing for the SNAP IPO.



SNAP Stock

 

SNAP stock chart

 

Early on, Twitter famously bandied about high growth rate numbers and user numbers in order to justify its valuation, but the growth eventually slowed, and the Twitter stock price dried up with it.

Evan Spiegel and co. went out of their way to avoid resembling Twitter, and the pitch worked, at least at first.

 TWTR stock chart

 

The Snap stock IPO price per share shot up to about $24.00 in the early days, even though it started trading at $17.00 per share. That huge gain would last about a day or two before the stock began tumbling back to earth.

So is Snap stock going to be the next Twitter stock? I’d say yes. There are just too many red flags right now that make me wary of SNAP stock.

First, remember that its valuation was absurdly bloated. The Snap valuation ended up being around $28.3 billion at its IPO, which—divided by its revenue in 2016—results in a value that is 70 times more than its revenue.

Instagram Competition and Snap Ad Dollars 

Snap ad products and Snap ad dollars are what the company runs on. It said as much in its SEC filings. (Source: “FORM S-1,” U.S. Securities and Exchange Commission, February 2, 2017.)

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BUZ INVESTORS Snap Ups the Ante (NYSE:SNAP) has had enough of Facebook Inc (NASDAQ:FB) building its clones over and over again. Following last week’s introduction by Facebook of new “

Snap shares fall to $17 IPO price for the first time

Snap shares fall to $17 IPO price for the first time

BUZ INVESTORS  Snap shares fall to $17   Snap Inc. SNAP, -4.22% hit the company’s initial public offering issue price of $17 for the first time Thursday. Shares were down 4.3% Thursday afternoon, and bounced back slightly to hover above the IPO price. Snap started trading on March 2. It had climbed as much as 73% above its IPO price at $29.44 in intraday trade on March 3. The highest closing price of $27.09, also on March 3, was 59% above the IPO price.

Snap shares fall to $17

 

Snap (NYSE:SNAP) shares drop to $17 this afternoon, marking the first time the company has hit its IPO price since the launch.

Monetization concerns, advertising problems, and questions about active user numbers have all plagued Snap recently.

Snap shares are down 4.37%

Business Description

Industry: Online Media » Internet Content & Information    NAICS: 519130    SIC: 7375
Compare: OTCPK:(YAHOY), NAS:(WB), NYSE:(TWTR), NAS:(VRSN), NAS:(MOMO), OTCPK:(MTHRF),

NAS:(YNDX), NAS:(IAC), NYSE:(ATHM), NYSE:(GDDY), NAS:(YY), NYSE:(WUBA),

NAS:(SINA), OTCPK:(RPGRY), OTCPK:(MLRYY), OTCPK:(JSTTY), OTCPK:(ATDRY),

OTCPK:(MIXIF), OTCPK:(RTMVF), NAS:(MTCH) » details

Traded in other countries: 1SI.GermanySNAP.Switzerland,
Headquarter Location: USA

Snap Inc is a camera application developer. Its main product is Snapchat, a camera application created to help people communicate through short videos and images. It also offers Spectacles, which are camera-enabled sunglasses.

Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe. The firm has approximately 158 million daily active users. Snap generates nearly all of its revenue from advertising with 88% coming from the U.S. The firm is headquartered in Venice, CA.

 

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BUZ INVESTORS Apple Stock Predictions 2020 It’s so easy to find forecasts about Apple Inc. (NASDAQ:AAPL). Almost too easy. Just type “Apple stock predictions 2020” into Google and see what comes up. People throw out all sorts

Apple stock set to snap its longest streak above this key chart level in 6 years

|Chart | Calendar   | TRADE NOW | AAPL

Apple stock set to snap its longest streak above this key chart level in 6 years

BUZ INVESTORS  Apple stock set to snap   Shares of Apple Inc. dropped Monday below a closely watched chart level, which could swing the short-term technical outlook to bearish from bullish for the first time in six months.

The technology giant stock AAPL, -3.24%  started sinking around midday on Friday, helping lead a broad selloff in the technology sector as investors appeared to cash in on recent gains ahead of the weekend. Losses were extended Monday, after Mizuho downgraded Apple on concerns that investor enthusiasm surrounding the iPhone 8’s release later this year is already baked into the stock.

The stock slumped 2.4% in midday trade, after shedding 3.9% on Friday. That put the stock on course to close below its 50-day moving average, which many technical analysts view as a dividing line between short-term uptrends and downtrends, for the first time since Dec. 8, 2016.




Apple stock set to snap

 

It looks like the tech selloff from Friday is spilling into the Monday morning trading session despite months of sharp gains.

Goldman Sachs turned cautious on the sector, warning investors that they should not consider tech as a safe haven, while some fear it has become a massive market bubble.

 

Business Description

Industry: Computer Hardware » Consumer Electronics    NAICS: 334220    SIC: 3571
Compare: OTCPK:(SNEJF), OTCPK:(PCRFY), NYSE:(KYO), OTCPK:(SHCAY), NYSE:(LPL), OTCPK:(ELUXY),

OTCPK:(HRELF), OTCPK:(APELY), OTCPK:(ACKAY), OTCPK:(CSIOY), NAS:(IRBT), NYSE:(FN),

NAS:(GPRO), NAS:(UEIC), OTCPK:(TCLHF), OTCPK:(BGOUF, OTCPK:ADPXY), NYSE:(KODK),

OTCPK:(VWIN), NAS:(VUZI) » details

Traded in other countries: AAPL.ArgentinaAAPL.AustriaAAPL34.BrazilAAPL.ChileAPC.GermanyAAPL.Mexico,

AAPL.Switzerland0JQ4.UK,

Headquarter Location: USA

Apple Inc designs, manufactures, & markets mobile communication & media devices, personal computers, & portable digital music players, & sells a variety of related software, services, accessories, networking solutions, & third-party digital content.

Apple designs consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Watch) and TV boxes (Apple TV), as well as a variety of services like Apple Music, iCloud, and Apple Pay. Apple’s products run internally developed software, and we believe this integration of hardware, software, and services often allows the firm to maintain premium pricing for its devices. Apple’s products are distributed online as well as through company-owned stores and third-party retailers.
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BUZ INVESTORS Snap Ups the Ante (NYSE:SNAP) has had enough of Facebook Inc (NASDAQ:FB) building its clones over and over again. Following last week’s introduction by Facebook of new “

Snap plunges 18% on first earnings report as public company

|Chart | Calendar   | TRADE NOW | Snap

Snap dives 20% as first earnings report misses on financials, users

BUZ INVESTORS PRESS RELEASE Snap plunges 18% Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended March 31, 2017.

BUZ INVESTORS PRESS RELEASE  Snap plunges 18%  Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended March 31, 2017.

First Quarter 2017 Financial Highlights:

 

 

Three Months Ended March 31, Percent
2017 2016 Change
(dollars in thousands)
(Unaudited) (NM = Not Meaningful)
Revenue $ 149,648 $ 38,798 286 %
Net loss(1) $ (2,208,837 ) $ (104,576 ) NM
Adjusted EBITDA(2) $ (188,243 ) $ (93,234 ) 102 %
Other Financial Highlights
Cash, cash equivalents, and marketable securities $ 3,242,556 $ 987,368
Cash used in operating activities $ (154,997 ) $ (92,541 )
Free Cash Flow(3) $ (172,990 ) $ (104,993 )
Capital expenditures $ (17,993 ) $ (12,452 )




Snap plunges 18%

>>>TRADE NOW<<<

(1) Net loss for Q1 2017 includes $2.0 billion of stock-based compensation expense, primarily due to the recognition of expense related to RSUs with a performance condition satisfied on the effectiveness of the registration statement for our initial public offering.
(2) Adjusted EBITDA is defined as net income (loss), excluding interest income; interest expense; other income (expense) net; income tax benefit (expense); depreciation and amortization; and stock-based compensation expense and related payroll tax expense.
(3) Free Cash Flow is defined as net cash used in operating activities, reduced by purchases of property and equipment.
Note: For adjustments and additional information regarding the non-GAAP financial measures discussed, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Operational Highlights

  • Daily active users (DAU)(1) – DAUs grew from 122 million in Q1 2016 to 166 million in Q1 2017, an increase of 36% year-over-year. DAUs increased 5% quarter-over-quarter, from 158 million in Q4 2016.
  • Average revenue per user (ARPU)(2) – ARPU was $0.90 in Q1 2017, an increase of 181% over Q1 2016 when ARPU was $0.32. ARPU decreased 14% over Q4 2016 when ARPU was $1.05.
  • Hosting costs per DAU – Hosting costs per DAU were $0.60 in Q1 2017, as compared to $0.52 in Q1 2016 and $0.72 in Q4 2016.
  • Capital expenditures – Capital expenditures were $18.0 million in Q1 2017, as compared to $12.5 million in Q1 2016 and $20.4 million in Q4 2016.
(1) We define a Daily Active User, or DAU, as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. We measure average Daily Active Users for a particular quarter by calculating the average Daily Active Users for that quarter.
(2) We define ARPU as quarterly revenue divided by the average Daily Active Users.

CONFERENCE CALL INFORMATION

Snap Inc. (SNA) will host a conference call to discuss the results at 1:30 p.m. Pacific / 4:30 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.

Snap Inc. uses the investor.snap.com and snap.com/news websites as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.

SNAP: Insider Buys/Sells

Click Here for All Insider Trades.

Insider Position Date Trades Shares Trade Price ($) Change (%) Details
Spiegel Evan CEO 2017-03-07 Sell 16,000,000 $17 35.06 view
Murphy Robert C. Chief Technology Officer 2017-03-07 Sell 16,000,000 $17 35.06 view
Lynton Michael Director 2017-03-07 Sell 102,670 $17 35.06 view
LASKY MITCHELL Director 2017-03-07 Sell 20,000,000 $17 35.06 view

 

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BUZ INVESTORS Facebook vs Snap (NASDAQ:FB) has done it again! On the first day of F8—the company’s annual developer conference—Facebook CEO Mark Zuckerberg launched a new augmented reality platform and the company announced new products,

Facebook vs Snap: The Social Media Players Battling on This Technology

FB Stock to Gain in This Facebook vs Snap Battle

BUZ INVESTORS Facebook vs Snap <span data-recalc-dims=(NASDAQ:FB) has done it again! On the first day of F8—the company’s annual developer conference—Facebook CEO Mark Zuckerberg launched a new augmented reality platform and the company announced new products," width="300" height="200" srcset="https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/04/Social-Media-300x200-Small.jpg?resize=300%2C200 300w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/04/Social-Media-300x200-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />

BUZ INVESTORS  Facebook vs Snap  (NASDAQ:FB) has done it again! On the first day of F8—the company’s annual developer conference—Facebook CEO Mark Zuckerberg launched a new augmented reality platform and the company announced new products, which clearly showed how the social networking  giant will continue to be the leader in the coming years. Facebook stock closed at $140.96 on Tuesday and is poised to go higher.

Snap Inc (NYSE:SNAP) also was not far behind in showcasing its AR efforts on Tuesday. The company introduced new “World Lenses,” which was another way to use its “Lenses.” Snap stock also jumped about three percent on Tuesday to close at $20.55. However, the market clearly sees more potential in Facebook’s AR/VR products and this is likely to hit Snap shares. (Source: “Introducing New World Lenses,” YouTube, April 18, 2017.)



 Facebook vs Snap

Zuckerberg was rattled by the growing popularity of “Snapchat,” the app that heavily used augmented reality to create new experiences for its users. He not only copied most of the features of Snapchat for Facebook products, but also made “Instagram,” another copy of Snapchat. However, the company made use of these features better than Snap, and today, its photo-sharing app boasts of more subscribers and higher growth.

Facebook vs Snap: The Battle for AR Dominance

Facebook had bought the maker of VR headsets, Oculus VR, about three years back for about $2.0 billion because Zuckerberg believed virtual reality to be the next computing platform and a high potential area for Facebook. It could be used not just for gaming, but also experiencing live events, being in a consultation with a doctor, and many more such experiences, if users could just wear these headsets in the comfort of their homes.

FB stock investors are excited by the prospects of this vision. But Snap is also not likely to give up its hold on the AR/VR market that is likely to grow by leaps and bounds in the coming years.

It was reported last December that Snap has acquired Cimagine Media, an AR firm that specializes in computer vision, real-time image processing, international marketing etc. But the most important fact is that it aims to help retailers benefit from the potential of AR technology. This augmented commerce feature may result in Snapchat becoming a popular platform for shopping for the users. (Source: “Snap reportedly acquired augmented reality startup Cimagine Media for up to $40 million,” VentureBeat, December 24, 2016.)

Facebook vs Snap: The Battle for Ad Dollars Would Be Tough for Snap Stock

Given the fact that Facebook has about two billion users and together with Google parent Alphabet Inc (NASDAQ:GOOG), commands more than 50% of the digital advertising market, Snap Inc would always be third in line for a long time to come.Like up on FACEBOOK


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BUZ INVESTORS Snap Ups the Ante (NYSE:SNAP) has had enough of Facebook Inc (NASDAQ:FB) building its clones over and over again. Following last week’s introduction by Facebook of new “

$Snap Ups the Ante Against Facebook Stock

Snap Stock Gains from the Launch of New Feature

BUZ INVESTORS Snap Ups the Ante <span data-recalc-dims=(NYSE:SNAP) has had enough of Facebook Inc (NASDAQ:FB) building its clones over and over again. Following last week’s introduction by Facebook of new “" width="300" height="182" srcset="https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/04/snap-stock-300x182-Small.jpg?resize=300%2C182 300w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/04/snap-stock-300x182-Small.jpg?resize=768%2C466 768w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/04/snap-stock-300x182-Small.jpg?w=791 791w" sizes="(max-width: 300px) 100vw, 300px" />

BUZ INVESTORS Snap Ups the Ante   (NYSE:SNAP) has had enough of Facebook Inc (NASDAQ:FB) building its clones over and over again. Following last week’s introduction by Facebook of new “Snapchat” features across its apps, Facebook stock had gained and Snap stock had gotten hit. But as we said earlier, Snap Inc needed to launch some new feature or product soon to reassure investors that its success was not just a flash in the pan. And the “camera company” did so on Friday by announcing a search tool for its “Stories” feature. Investors seemed to like it; Snap shares ended Friday’s session with a gain of 1.4%, closing at $22.53.



OTHER STORIES BUZ TRADERS FOLLOW

Snap Ups the Ante

Snap Inc has introduced a search tool for its most talked about Stories feature. This is to make content easily accessible to more users and thereby grab more eyeballs and engagement time. Using machine learning to analyze information in its myriad posts full of data and pictures, the new search tool shows information to users about the scene at a nearby bar or a local basketball game. Until now, there was no option for users to do this as they only saw the curated features of Stories from the people they followed or whatever Snapchat showed them. (Source: “Snapchat Launches New Search Tool in Quest for More Engagement,” The Wall Street Journal, March 31, 2017.)

Snap Inc Needs to Be More Agile

Facebook copied Snapchat Stories for its subsidiary, “Instagram,” and the impact was for all to see. Since its launch, the numbers for “Instagram Stories” have been swelling, whereas the growth of Snap users has almost stalled. This has been a major reason for the pessimism surrounding Snap stock and the optimism related to Facebook stock. The fact that Facebook owns hardware businesses and messaging apps as well does not do anything good to Snap Inc’s cause.

Snap Stock Suffers from Lack of Clarity

It has been exactly a month since Snap Inc debuted on NYSE and the initial euphoria seems to have died down. Evan Spiegel has a lot of challenges going ahead as Snap stock investors expect a lot more from the social network than just being the best camera company.

As mentioned earlier, Snap Inc needs to keep working on introducing new products and features that keep its innovative momentum going.

 


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Buz Investors SNAP Stock Valuation Stands (NYSE:SNAP) had quite the wild ride when it first opened to the public. The SNAP IPO price per share was pegged to open at $17.00, but quickly shot up by 41.2% when shares began trading.

How the SNAP Stock Valuation Stands Compared to Other Tech Giants

Is SNAP Stock Overvalued?

Buz Investors SNAP Stock Valuation Stands <span data-recalc-dims=(NYSE:SNAP) had quite the wild ride when it first opened to the public. The SNAP IPO price per share was pegged to open at $17.00, but quickly shot up by 41.2% when shares began trading. " width="300" height="169" srcset="https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/03/snapchat-ipo-valuation-300x169-Small.jpg?resize=300%2C169 300w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/03/snapchat-ipo-valuation-300x169-Small.jpg?resize=768%2C433 768w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/03/snapchat-ipo-valuation-300x169-Small.jpg?w=852 852w" sizes="(max-width: 300px) 100vw, 300px" />

Buz Investors  SNAP Stock Valuation Stands (NYSE:SNAP) had quite the wild ride when it first opened to the public. The SNAP IPO price per share was pegged to open at $17.00, but quickly shot up by 41.2% when shares began trading. Glowing after a solid first day on the open market, it makes sense why investors might be feeling the Snapchat love right now. But others aren’t too sure, and that all comes back to the Snapchat IPO valuation. Frankly speaking, the Snap valuation vs tech giants from the past might just turn off a lot of people wanting to put money in Snap stock.

Why is that? Well, the Snapchat IPO valuation was high. Very high. Maybe too high. And that could hurt the Snap stock forecast.



OTHER STORIESBUS TRADERS FOLLOW

SNAP Stock Valuation Stands

Facebook’s price-to-sales is less than 13 times its valuation. Of course, Snapchat is a much younger company with much more room to expand, while Facebook is an established tech powerhouse likely to see more incremental improvements over the coming years instead of a giant leap forward. Still, Facebook reaches over a billion people worldwide and has a trusted and proven product. Not to mention that the company raked in a net income of over $10.0 billion in 2016, giving FaSnapchat cebook quite the upper hand on a company still burning through cash to the tune of hundreds of millions. (Source: “FB Company Financials,” NASDAQ, last accessed March 7, 2017.)

 Snap is angling itself as more than a social media company. Instead of trying to go head-to-head in a Snap vs. Facebook death match, the company has tried to position itself not only as different than Facebook and its subsidiary Instagram (or at least different enough that the two social media empires can exists side by side), but also as a tech developer heading in a totally unique direction.

Take the Snap “Spectacles,” which we’ll revisit later in this piece. The device is part of Snap Inc’s attempt to reposition itself in the market as a camera company.



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Buz Investors Snapchat vs. Facebook Shares of Facebook Inc (NASDAQ:FB) have more than tripled since the company held its initial public offering (IPO) in 2012. An explosion in profits, not to mention a corresponding rise in Facebook user growth, kept the stock on an upward track.

Should You Buy Snap Stock?

Snapchat vs. Facebook: The Hottest Social Media Stock for 2017

Buz Investors Snapchat vs. Facebook Shares of Facebook Inc <span data-recalc-dims=(NASDAQ:FB) have more than tripled since the company held its initial public offering (IPO) in 2012. An explosion in profits, not to mention a corresponding rise in Facebook user growth, kept the stock on an upward track." width="300" height="200" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/02/Social-Media-300x200-Small.jpg?resize=300%2C200 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/02/Social-Media-300x200-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />

Buz Investors Snapchat vs. Facebook Shares of Facebook Inc (NASDAQ:FB) have more than tripled since the company held its initial public offering (IPO) in 2012. An explosion in profits, not to mention a corresponding rise in Facebook user growth, kept the stock on an upward track.

But now, Facebook is facing the ultimate challenger: Snap Inc. These two social media stocks are set to collide after the Snap IPO comes to fruition. Many analysts are worried about this Snapchat IPO, because it could potentially harm FB stock, but I’m less convinced. I think the question we should be asking is: Should you buy SNAP stock?



Other Stories Bux Traders Follow

Snapchat vs. Facebook

What they saw was a company with phenomenal growth. The Snap IPO papers revealed revenue growth in the high-triple digits and intense engagement. There were other tidbits hidden in the fine print, but the broad sense was that SNAP stock could soar after the Snapchat IPO. (Source: “Form S-1 Registration Statement,” U.S. Securities and Exchange Commission, February 2, 2017.)

Zuckerberg famously turned down $1.0 billion from Yahoo! Inc. (NASDAQ:YHOO). In a funny twist of fate, Snapchat CEO Evan Spiegel refused a $3.0-billion acquisition offer from Facebook. History just goes round and round in circles. Now that the Snap IPO is set to become the third-largest tech IPO of all time, behind only Facebook and Alibaba Group Holding Ltd (NYSE:BABA), the comparisons are inevitable.

“We generate revenue primarily through advertising,” Snap wrote in its IPO filing. “We help our advertising partners generate a return on their investment by creating engaging advertising products that reach our large and desirable audience.” (Source: U.S. Securities and Exchange Commission, op cit.)

This business model should look familiar. It’s pretty much what Facebook and Google have been doing for years. Even now, five years after entering the stock market, Facebook generates nearly 98% of its revenues from advertising. It keeps promising that “Payments and Other Fees” will become a bigger part of the pie—but it just has not happened.

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Buz Investors Snap Financials For the last few years, initial public offerings (IPOs) have been a barren wasteland of disappointment. Investors hope the upcoming IPO of Snap Inc.

Investors Preview Snap Financials

Snapchat Begins Preparation for IPO This Week

Buz Investors Snap Financials For the last few years, initial public offerings <span data-recalc-dims=(IPOs) have been a barren wasteland of disappointment. Investors hope the upcoming IPO of Snap Inc." width="300" height="193" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/02/Snapchat-300x193-Small.jpg?resize=300%2C193 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/02/Snapchat-300x193-Small.jpg?w=746 746w" sizes="(max-width: 300px) 100vw, 300px" />

Buz Investors Snap Financials For the last few years, initial public offerings (IPOs) have been a barren wasteland of disappointment. Investors hope the upcoming IPO of Snap Inc.

Buz Investors Snap Financials For the last few years, initial public offerings (IPOs) have been a barren wasteland of disappointment. Investors hope the upcoming IPO of Snap Inc.—more commonly known as the Snapchat IPO—will break the cold streak, but that really depends on whether Snapchat is a success.



Other Stories Buz Traders Follow

Snap Financials

Will Snapchat stock break up or down after entering the market? What will it look like after a year on the public exchanges? Like Twitter Inc (NYSE:TWTR)? Or Facebook Inc (NASDAQ:FB)?

Did I forget to mention that? Snap disclosed its IPO documents last week, which is probably something that investors should keep an eye on. The investor prospectus enclosed in the S-1 Filing with the U.S. Securities and Exchange Commission (SEC) is crucial to pricing a Snap valuation. (Source: “Form S-1

Understand what that means. As a shareholder, you will have absolutely no power to influence the company’s behavior. Spiegel and Murphy are basically the “dictators in perpetuum” because they control a majority of the votes. They can basically do whatever they want, whenever they want, without much oversight.

This might seem like a radical maneuver, but it has become popular ever since Facebook’s CEO did the same thing. Mark Zuckerberg held onto his control over the company by issuing new shares that lacked the most essential part of common equity: voting rights.

Big opportunities (like the Snapchat IPO, for instance) can be blinding to even the most rational of people. That’s why it’s important to remember what a business actually does, where its revenues come from, and what plans it has for the future.

I know 300% growth is a bold prediction, but look at the big picture. Tech bulls haven’t seen a promising IPO in years; they are hungry for a return. The Snapchat IPO in NYSE is an oasis for most tech investors, because that have to put their money somewhere.

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