Snap IPO is tomorrow. I read their S-1 and they are generating high revenue streams but no profit. Interesting to see how this plays out especially with their valuation.
Snap IPO is tomorrow. I read their S-1 and they are generating high revenue streams but no profit. Interesting to see how this plays out especially with their valuation.
Hard to make worthwhile money on a IPO. Unless you're an insider..... things happen too fast
24 billion for a camera company?????? no thank you. They even admit that their user base is the least loyal of demographics. Slowing user growth. Shares have no power.
Thanos was the hero
I figure the IPO will skyrocket upon open as usual and pull back and settle down. I bought into an IPO last year at about $2 above the IPO price thinking it would stabilize but it fell to about $5 below the IPO price. I'm ALMOST at the break even point now which sucks but the company is gaining traction and see no reason they won't go back up to where they were if not higher. I think it's a waiting game on the price to come down then hold for a few years like Facebook.
The user base demographics are young and we all know these kids have A.D.D when it comes to apps. Just look at Pokemon Go and Flappy Bird or whatever it was. They're struggling to grow my generation and older (30+) demographics and they have to teach old dogs new tricks. The general premise of SnapChat wasn't appealing to the older crowd because they have to change decades of thinking about photos and videos. Snap is trying to make it more than just capturing memories, but capturing moments in time for a fleeting brief few seconds. They've introduced alot of features like Stories and the filters which makes users want to engage in it. Many of my peers use SC now just for the filters to share photos of each other and the babies. They get the biggest kick out of using a filter to swap faces with the baby or make the baby girl have a mustache.
Could be the next Alibaba :)
This is worth 24 billion dollars
Thanos was the hero
Haha! That's too funny. According to their S-1 chart (below) the lenses are being adopted pretty well since they've pretty well gone viral. The money is coming from the filters itself but the advertising revenue being generated from custom filters. Remember they also went from 58m to 404m in revenue in just a year. That's quite a large jump for a free app. I won't argue the valuation is really high though.
A company like Starbucks that can re-invent their advertising to use the filters can create a much more powerful, effective campaign. It's more than just people that vomit rainbows.
"To promote Frappuccino as the drink of the summer, Starbucks ran an integrated campaign that leveraged multiple advertising products to tell a cohesive story, reaching over 117 million views. They started by running a series of three playful Snap Ads that each featured a new flavor of Frappuccino. The Snap Ads focused on the bottled version of the beverage, which can be purchased at a variety of different locations for a ”Pop, Sip, and Go” experience.
Starbucks also created an in-store experience throughout the campaign, using regularly-updated Sponsored Chain Geofilters available at their locations across the U.S. to promote the blended version of the drink. The summertime Sponsored Geofilters were a testament to the power of Creative Tools that let users share what they’re up to with their friends and family, with over 40 million people viewing Snaps that featured one of the Sponsored Geofilters.
Finally, Starbucks also ran a Sponsored National Lens campaign to drive awareness by inviting users across the U.S. to play and interact with the Frappuccino-themed Lens, which featured a cameo of the cat from one of the Snap Ads. The Sponsored Lens was engaging, seeing an average of over 23 seconds of play time per user."
33 billion for the ability to do this:
Thanos was the hero
There's a Chinese knock off out there too
I think the valuation of SNAP is ridiculous and will be worthless one day, but...................I do realize that people with much more money than me invested billions into it.........so.............
will probably get bought out.................lol
Thanos was the hero
Actually $350 million last year partly because of this:
"Snapchat would not say how much the takeover cost 20th Century Fox, but reports say that sponsoring a lens can cost $450,000 to $750,000, depending on the day."
Imagine if instead of spending $5 million on a SuperBowl ad for 111 million people you spend $1 million for 100 million people.
I personally don't use it and truly don't understand those that do...but I said the same thing about Facebook and when my Dad bought a chunk of it at $25 and I laughed in his face.....ya so I'll probably buy SNAP if it dips back down below $20 lolOriginally Posted by boneil
I didn't think Facebook would go anywhere at the time. I thought they came into the game too late to monetize properly. They showed me.
They really talkin it up this am with media deals.
Thanos was the hero
This is reminding me of GPRO. That was ridiculously pumped at the ipo and it went to the 90's before it came back to reality. It's all about supply and demand of shares at this point.
I may have nibbled
Last edited by boneil; 03-03-2017 at 08:49 AM.
Thanos was the hero
Here's who and how the "REAL" money was made in this and most IPO's.Totally engineered right from the start.
http://finance.yahoo.com/news/factbo...185415057.html
I got in and got out because of the frenzy. I plan to wait for the drop and then go long.
read an interesting blog about how all the millennials who use SNAP are buying it up with the new stock apps like robinhood. Valuations won't matter till the lock up expirations start getting close. But be mindful, I have seen locked-up shares get sold early. GPRO did it, and used the excuse that the shares went into a charity of some sort.
Also, I know someone who was allocated shares at the IPO for $17/share. The problem is that he only got 100 shares, which isn't uncommon. What the heck can he do with 100 shares? Like many who got in on the IPO, they will be looking to add to their positions. Of course he wants to add below $20.
Thanos was the hero
Interesting. I haven't looked into Robinhood until you mentioned it. Free trading does seem appealing though.
exactly like gopro lol. i got in on that strictly because loyal3 allowed it through their program. held through the peak and sold at 84. that is the only way these companies are worth money to me. once they become established, i.e. facebook, i begin to nibble again.
David Tepper on CNBC this am said he had some at the IPO of 17, says its too much in the twenties, but would look to buy if price got back down to 17. His comments would probably put a good floor in it if price got below 20.
Thanos was the hero
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