Snap, Inc. has moved forward with the largest IPO in the history of tech and there has been a great bit of fluctuation in the history of the company as well as in the progress of the IPO.
Snap has a great management team and has continued to make sure that it knows how to leverage tech in new ways that continue to help the company grow. One thing that seems a bit complicated for the long-term business model and the demographics for success. It is uncertain if the company is going be able to sustain the kind of growth that is necessary for long-term returns. One thing that is great about the company is that there are many young users which are understanding the way that tech works faster than most people. It is unclear over the long term if the company is going to be able to maintain the growth that is required for maintaining the growth and the valuation that has been assigned to the company.
The initial value of the company has been set at 17.00 to 18.00 per share while the range continues to fluctuate up and down. One thing that will drive the valuation of the company is the advertising revenue as well as new user growth. The evaluation of the company out there depends on many factors. We are going to take a detailed look at some of them here.
The Benefits of Snap: Snap has continued to develop new features that have continually brought in new users. There are many new features such as photos, videos, lenses and filters that are sometimes only available for around 24 hours. What that also means is that there are many features that continue to be a benefit as well to many advertisers as well as many new kinds of hardware that are also associated with integration and new use.
The company continues to be a trendsetter in tech and that means that it is possible to know that there will continue to be new users who are drawn to things like the advances in 4G availability and the way that the software continues to function
The Cons of Snap: Snap with its development of new filters and graphics has continued to be very gimmicky and that means that there is not going to be any long-term acceptance and growth. Because of many of the other features that have been added into other competitors such as Facebook messenger it is not clear what the long-term success will be of the application.
From looking at the current valuation it is unclear that there will be a long-term ROI for new users as well as it is unclear what the growth method will be. For these reasons, it is hard to decide to support the IPO as well as the strategies of the company is employing to continue to grow and to stay relevant in the highly competitive market.