The organization, which opened up to the world on Thursday, got a warm welcome into money markets, soaring 44 percent in its first day of exchanging and another 10 percent in its second.Revenue-wise, Snap made $404.4 million in 2016, up a long way from $58.6 million in 2015. But, in terms of net profit, the company reported a loss of $514.6 million in 2016.
We're now just a week away from the highly-anticipated Snap, Inc. (NYSE:SNAP) IPO, and it's easy to fear the worst. Most of the reports that you've probably read - including many of those by my fellow Fools -- are blasting the social media upstart as an investment. Snapchat's popular, but mounting losses and monetization challenges make it a risky bet for most portfolios. I won't argue against the low floor, but I think the market's also ignoring the high ceiling. Let's go over a few reasons why Snapchat's parent company may make sense in your portfolio.
The IPO is unusual in that investors aren't granted voting rights, with Reuters calls "an unprecedented feature that has raised concerns among corporate governance leaders that other high-valuation companies may follow suit and leave investors with little say over company operations." The price values Snap at a little under $24 billion, around the valuation of Google at the time of its IPO but far smaller than Facebook, which was valued at over $81 billion when it debuted, according to snap stock forecast. Facebook, which owns Instagram, announced Tuesday that it would be giving Instagram users the ability to send disappearing photos to a single friend or to a select group of friends, essentially Snap’s core function. Previously, disappearing messages were only a part of Instagram Stories, in photos or videos are visible to all of your follower.
< Message edited by Purulady -- 4/27/2017 9:41:17 AM >