Snap IPO: Should You Buy Snapchat Stock?

But in the second six months, IPOs gained only 0.7% on average, lagging other stocks by more than five percentage points. With almost 158 daily active users, Snapchat already has a bigger audience than Twitter, three-fifths of whom snap or chat daily. By contrast, Snap shares are at a rich 61.7. But while Snapchat has proven that it's not a fad, that doesn't necessarily make Snap a sound investment. But if you look at the stock on a price/sales ratio basis, Snap is starting out from a very expensive place.


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Snap Inc IPO: Advertisers Worry Over Mobile Ad Measurement

Snap Ads will account for 68% of Snapchat's expected $804 million U.S. ad revenue in 2017, eMarketer estimates. While major advertisers have been eager to experiment with Snap, the measurement issues loom large in persuading advertisers to make big, long-term commitments. Snap's popular mobile video ads start at $10,000 per month, while ads on the Discover feature, reserved for big publishers and brands, start at $50,000 per day. "You need that competition to put the onus back on the person selling you a bill of goods," said Ian Schafer, founder and chairman of digital ad agency Deep Focus. Google and Facebook control about 60% of the U.S. digital ad market and their growth has accelerated in recent years, according to data by eMarketer and Interactive Advertising Bureau.




A Snapchat sign hangs on the facade of the New York Stock Exchange (NYSE) in New York City, U.S., January 23, 2017. It will list on the New York Stock Exchange on Thursday. The successful IPO pricing clears a major hurdle for Snap, which will go public without having yet turned a profit. Despite the challenges in converting "cool" into cash, Snap clinched a valuation of $24 billion, the richest valuation in a U.S. tech IPO since Facebook in 2012. REUTERS/Brendan McDermid/File PhotoSnap Inc, owner of popular messaging app Snapchat, raised $3.4 billion in its initial public offering on Wednesday, more than it had sought, in the most eagerly awaited technology IPO since Chinese e-commerce giant Alibaba went public in 2014.


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collected by :John Miller