Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Facebook in Focus as Snapchat Plans $25 Billion IPO for March

Friday, October 7, 2016 8:09
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Facebook logoIn a move that could signal the first real threat to Facebook Inc’s (NASDAQ:FB) social media dominance, Snapchat parent company Snap Inc. is reportedly planning a massive $25 billion IPO for next year.

From the Wall Street Journal:

The company, formerly known as Snapchat, is preparing the paperwork for an IPO with a view toward selling the shares as early as late March, according to several people familiar with the matter.

There is no guarantee the four-year-old Venice, Calif., company will proceed with a share sale in that time frame, and there is no guarantee it will achieve a valuation of $25 billion or more.

But if the IPO does go through, and its valuation is in that $25 billion range, Snap would mark the largest U.S. IPO since 2014, when Alibaba Group Holding Ltd. (NYSE:BABA) debuted with a massive $168 billion public offering.

Snapchat is the social media platform of choice for the 18 to 24-year-old demographic, and boasts about 150 million daily active users. What started primarily as a way to send disappearing messages to fellow users — which many formerly used to send illicit photos and text — has rapidly evolved into a cutting-edge messaging service with hundreds of popular photo and video filters.

Older users are beginning to use the service as well, in a development that mirrors Facebook’s own success story. Originally, Facebook was only available to college students on a limited basis, but spread rapidly as it was offered to more colleges, and eventually, to the general public.

With Twitter (NYSE:TWTR) struggling to attract new users, Snapchat likely represents the largest current threat to Facebook. The company’s growth continues to impress investors, and a high-profile IPO next year would raise the company’s profile considerably.

Snapchat competes to attract the exact same advertisers that Facebook does, so the social media landscape will likely continue to heat up over the next several months as the proposed IPO nears.


Thus far, the markets don’t seem too concerned about Snapchat’s potential effects on Facebook. FB shares rose $0.13 (+0.10%) to $128.87 in Friday morning trading, and have surged 23.29% year-to-date.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.