Snapchat has this app peaked or is it a platform set to blossom
A Depressing Year for IPOs
Initial Public Offerings, as reported by the Market Watch, witnessed a depressing state in the year 2016. The year 2016 brought with it, the lowest numbers of IPOs since the year 2009 (Huston, 2016).
2016 came to a close with Trivago NV stock ending up in the issue price lower than what it had expected and declared earlier. IPOs have been going through a state of despondency, and there have been no saviours for them to elevate the market. Poletti (2017) in her article narrates that only 21 US technology companies went for IPOs in the last year. Potential listings for the current year are in process so that the IPO market can be boosted again and revived for the sake of increasing value in the market.
Snapchat – IPOs Saviour?
With the filing of the Snapchat in IPO listings for the year 2017, hopes are high for the revival of buying and selling the stocks to the public (Huston, 2017). The filing by the company has gained Snapchat online, a lot of interest and attention. It has come in competition with the IPOs that Facebook and Twitter had put up. Online Snapchat has millions of users signing into Snapchat every day, thus coming at par with Facebook and Twitter.
According to an analyst, Evan Danckwerth (Poletti, 2017), IPO market is extremely sanguine with the listing viewing of the Snapchat online in the market. It is being declared that Facebook and Twitter are going to get competition by Snapchat in the IPO market. Snapchat available online is said to be a major player in the technology market IPOs.
Split Opinions about Snapchat IPO
In the milieu of the IPO listing of the social media app, Snapchat, analysts and market experts are divided into two aspects (Poletti, 2017).
One aspect relates to the camp that expects well out of the Snapchat IPO and asserts that the Snapchat online is ‘the’ social media app that is going to get the wheels of social media turning. They have been referring to the Snapchat’s IPO listing as the one carried out by the Facebook.
It had a ruinous offering primarily. But later, the time witnessed a soaring rise in the company’s stock which is partly due to the fact that Facebook got hold of mobile advertising (Carson, 2017).
The other camp is not so much hopeful for high initial public offerings of the Snapchat. What they contend is that Snapchat has already seen its glory days and the IPOs do not hold any future for the investors (Poletti, 2017).
They argue that the company does not promise anything good as it has extremely high costs of operation and it has by now, suffered a lot of losses, which is not a good sign for the investors.
Eric Schiffer, the chairman, and CE of an LA private-equity firm compared the Snapchat to Myspace in the sense, that Myspace was once very popular. But it is no more doing any notable business.
Myspace is still there, but market value-wise there is nothing left for. He contends that Snapchat is a similar fate (Poletti, 2017).