Listen up old guys, out of touch executives and Zacks employees. Snapchat needs to be taken seriously. The company is rapidly approaching an IPO and will soon be center stage, mentioned in the same breath as Twitter TWTR and Facebook FB I know a lot of you probably have no idea what Snapchat is so here's a little crash course to get you up to speed.
Snapchat is a photo and video sharing app. Think of it as Twitter with videos instead of texts. And while many of us are fixated on sending text or typing to communicate with the rest of the world, a good chunk of the market would rather shoot a quick video. You can aggregate a bunch of videos together to form your story, then publicly share this story with the world. Early adopters like
DJ Khaled have used Snapchat to gain huge followings and build their brands. Khaled is known for his amusing videos where he gives you the keys to more success. His simple videos attract over 4 million viewers each time.
Another great feature of Snapchat is the messages you send to people disappear shortly after they have been viewed. You can send pictures and videos that are erased in this fashion too. That way, there's no evidence the next morning. And if you think you're gonna be slick and take a screenshot of something, the app knows and will alert the other person. It's a modern way to make sure your message will self-destruct.
It's very easy to use, in fact, let's put one together right now. Hi everybody. Welcome to Trending Stocks with the bearded boy wonder! Add a little note #BeardGameStrong, add it to my story and send one to a special someone. Boom. That easy.
The parent company, Snap Inc is working on an Initial Public Offering that could value the company at $25 billion. Snap's most recent round of funding in May was done at a $17.8 billion valuation. At $25 billion, it would be the largest tech IPO since Alibaba BABA went public in 2014. They are targeting the end of this year or early 2017. The company has already told investors they expect $1 billion in advertising revenue in 2017. Compare that with $3.1 million in ad revenue for the first 11 months of 2014. They expect to have 58.6 million users in the US by the end of the year, and expect to see that number rise 13.6% in 2017.
Every time you share this video, I slide in them DMs. Chime in the comments section below. Let me know if you'd buy the Snapchat IPO. Subscribe to the YouTube channel , Twitter @bartosiastics , and come back here to check out all the Trending Stocks with Zacks.com. I'm Dave Bartosiak.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.