The parent company of the messaging app Snapchat has filed to list on the US stock market.
According to reports the California-based firm would be worth between $20-25 bln.
The move would make it the largest US-flotation since Alibaba, the Chinese e-commerce giant, listed 2 years ago.
Russ Mould, Investment director at AJ Bell tells Proactive’s Andrew Scott: ”It’s been a hot sector … Alibaba has been an ultimate success as a public company. It is an area that investors still seem to be attempting to access.”
”Ultimately it’s the same as assessing any company whether it’s already quoted or not – does it have a sound business model, can it charge for its services at the price it wishes to charge, does management have integrity and ultimately does it come at a valuation you feel is appropriate to the long term potential”.
”There’s clearly enormous long-term potential here working in the social media space and I think what makes Snapchat exciting to a lot of people is the youthful demographic it addresses”, Mould added.
Story by ProactiveInvestors