Snapchat Files to Come Public at an Absurd Valuation

The company will come public under the ticker SNAP. They’ll raise $3b, placing their valuation at around $25b. For the year, they’ll do ~$400 mill in revenues — booking losses of $514m. That was not a typo.

Source: CNBC

Net revenue: $404.48 million in 2016, up from $58.66 million in 2015
Net loss: $514.64 million in 2016, wider than $372.89 million in 2015
Loss from operations: $520.39 million in 2016, wider than $381.73 million in 2015
Usage: 161 million daily active users in the December quarter (60 million daily active users in the United States and Canada)
Average revenue per user: $1.05 in the December quarter ($2.15 in North America)
Time spent: 25 to 30 minutes a day
Head count: 1,859 employees
The company filed for a $3 billion IPO, though that is a placeholder amount and certain to change as the company sets a price on the deal.

The company claims to have 158m daily active users — up from 107m last year.

For 2017, they guided revenues up to $1b, placing their price to sales ratio at around 25x sales — putting them at the very pinnacle of overvalued social media stocks. Juxtaposing SNAP against Facebook’s 14x sales or BABA’s 14x sales makes me wonder what in the actual hell the VCs and investment banks think they’re doing? This is bound to woefully underperform, like all of the other shit IPOs that have been flung in our faces, like pieces of shit, the past 6 years.

The stock will begin trading in March, led by underwriters Morgan Stanley, Goldman Sachs, JPMorgan, Deutsche Bank, Barclays, Credit Suisse, and Allen & Company.

Avoid.