![]() Such a move would give the impression of bursting demand for Snap stock, which would help the company’s founders justify an even higher valuation later on.īut that maneuver also comes with a history of cautionary tales, most notably that of Facebook (FB). What’s more, Snap’s proposed valuation could be the Snapchat founders’ way of drawing more prospective investors in by allaying any squeamishness over too rich a price, while also setting the stage for the company to increase it after its IPO road show, as Fortune’s Erin Griffith points out. Snap has already raised the ceiling on the amount it plans to raise in the IPO, from $3 billion in its first filing to $3.68 billion in its latest one. ![]() Of course, Snap can still raise the price of its stock offering before it goes public. Twitter’s shares debuted at about 45 times the company’s sales. While Snap’s IPO will by no means be cheap, that more conservative price-to-sales valuation puts it in line with Twitter (TWTR) when that social media company went public. (Though if Snap prices at the high end of its range at $16 per share, giving it a valuation of around $22 billion, it would trade at almost 54 times sales.) ![]() At a valuation of $19 billion, Snap stock would trade at 47 times sales, not quite as sky high as the price-to-sales ratio of 62 that we previously computed. That’s as much as 24% less than the $25 billion valuation for which Snap was reportedly aiming, which was also the Snapchat company’s private-market valuation as of its latest funding round.Īnd that means that Snap’s future shareholders won’t be taking quite as much risk by buying into the maker of the disappearing message app, which lost $515 million at its bottom line last year. Snap now hopes to price its stock at $14 to $16 per share, valuing the company at about $22 billion at the high end, but at $19 billion on the low end. ![]() On Thursday, however, Snap updated its IPO filing with a proposed stock price for when it goes public in March (under stock symbol “SNAP”), and it’s not quite as high as had been widely expected. first filed its IPO prospectus, we wrote about how insanely expensive Snap’s stock was likely to be. Two weeks ago, when Snapchat’s parent company Snap Inc. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |