Snapchat’s owners may be getting ready to float the company on the stock market, with a mega-valuation of $25 billion.
Snap Inc., Snapchat’s parent company, is reportedly working on an initial public offering, and is already preparing paperwork for the move. That’s according to a new Wall Street Journal report that says the current plan is to start selling Snapchat shares “as early as late March”. The article cites “several people familiar with the matter”.
It’s worth noting that despite best wishes, there’s no guarantee that we’ll see an IPO by March, and there’s also no guarantee that the company will achieve its lofty $25 billion valuation either. But if Snap Inc. goes ahead with the IPO, it will be the biggest flotation on a US exchange since Alibaba debuted for $168 billion back in 2014.
If Snapchat does enter the stock market, it means anyone with cash and willingness will be able to own shares of the firm. But it’s important to carefully consider Snapchat’s prospects if you want to invest. After all, despite Snap Inc.’s 2015 revenue of $60 million, sources suggest the company is still losing money; the overwhelming majority of its earnings come courtesy of advertising sales right now.
Snapchat launched back in 2011 and has since ballooned to become one of the biggest social networks on the planet, with an estimated 150 million daily active users.
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