Snapchat company targets $22 billion stock market value
The company that runs the popular photo app Snapchat is expected to be worth slightly less than previously expected when it debuts on the stock market. Snap Inc. is targeting a valuation of between $19.5 billion and $22.2 billion, according to media reports Thursday.
Previously, $25 billion had been considered the benchmark for months. The final valuation is to be determined in the coming weeks based on investor interest, the Wall Street Journal and Financial Times reported Thursday. Snap had announced an initial three billion dollar IPO in early February. The figures published for the first time in the process also revealed weaknesses in the business. For example, the previously rapid growth in user numbers suddenly faltered at the end of last year. According to the IPO prospectus, Snapchat had an average of around 158 million users a day in the final quarter of 2016. Compared to the third quarter, only five million users were added. Snapchat became popular especially among young users with photos that disappear on their own after being viewed. Meanwhile, the app is also being used more for communication and is being expanded into a platform for media content. (SDA)
