03-02-2017, 05:44 PM
3d wrote:
SNAP IPO @ $17
Opened for trading at $24.
Two nuggets of information to digest...
Snapchat parent company Snap Inc. posted a net loss of $514.6 million in 2016, according to the initial public offering prospectus it filed on Thursday.
Snap also said that it "may never achieve or maintain profitability," as it plans to continue investing heavily in its business.
Wait.. WHAT?!!
This will be interesting to watch. The app is obviously wildly popular among kids (my own included), but from what I've read, there is no foreseeable path to profitability. Instagram on the other hand has seemingly limitless potential, and it duplicated everything SnapChat does in a single update. Not sure what they've got except for early traction that may mean nothing a year from now.