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Ticker: SNAP Potential: -75% Price: $24.5 (1st day close)
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IPO Profile
11.6Bn
xxxPost-IPO Analysis
Market Cap. $28Bn
Closing Price $24.5
Business Overview
Source: Thomson Reuters Snap Inc. is a US based social media company which draws the majority of its revenue
5 Forces of Porter from online adversising, in its famous camera app, as well as from the sale of comple-
mentary hardware products, namely Spectacles, their camera glasses. The company was
founded in 2011 under the name of Picaboo and went public in March of 2017 in an IPO
priced at $17 a share, valuing it at $24Bn. Snaps main strengths when facing its main
competitors (Facebook and Twitter) include high user engagement (25-30 min per day),
high ad engagement (2 times Facebooks) and the ability to display full screen ads. Re-
venues grew from $58Mn in 2015 to over $400Mn in 2016, even though EBIT decreased
Source: Team Estimates further from -$380Mn to -$520Mn due to higher operating expenses including the usage
User Data of Google Clouds services as servers. As of the end of 2016, all revenues came from
online advertising and 87% of revenues came from the US.
Director
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