Snapchat has just filed for an initial public offering according to many tech sources.
If you didn’t understand what that sentence means, let me break it down for you:
Firstly, Snapchat is an app where users can take pictures and videos and send it to their friends. The interesting feature about this is that these pictures and videos are available for 24 hours before they’re not available anymore. Snap! They’re gone like that.
Snapchat has gained a lot of popularity with teens and has become a bigger phenomenon thanks to its “filters” feature. The filters feature allows for users to use different images and text for their selfies.
People (especially females) are notorious for using these filters and even posting them on their instagram pages.
I’ll be honest, Snapchat is not for me. I don’t get it. Tried it a couple of times and then gave up.
But many companies and advertising companies see Snapchat as a goldmine and are leveraging the product to sell their ads and advertise products to Snapchat’s user base. In November 2015, it was reported that Snapchat had more than 100 million daily active users. That’s a lot of people!
I know Ghanaian teens love Snapchat and actively use it. It baffles me but I’m not the target demographic
Ok, so that’s Snapchat and what it’s about. So what is an IPO?
An Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company usually are sold to institutional investors that in turn, sell to the general public, on a securities exchange, for the first time.
Basically it means, Snapchat can be listed on the stock market and investors can buy and sell shares. It was reported that Snap Inc, the company that makes Snapchat, was valued at $18 billion (!!!)
Not bad for an app which just takes pictures and videos and holds them for a limited amount of time.
It should be interesting what happens next. Snapchat’s new successful venture, Spectacles is getting rave reviews (depending on how you ask btw) and Snapchat users are eating it up.
If these Spectacles sell, and the users keep getting huge daily numbers, the guys behind Snapchat are in a for a huge payday.