Evan Spiegel (CEO of Snapchat) and the Snapchat team has really done a phenomenal job expanding Snapchat by adding new features such as the facial recognition filters, and, quite recently, strategically selling limited-stock spectacles to keep the crowd in suspense. However, the largest news of them all is that Snapchat has recently been “filing with the Securities and Exchange Commission (SEC) in recent weeks, according to people familiar with the matter,” according to the Wall Street Journal. This means that they may consider going public through an initial public offering so that they can issue shares to the public markets and allow people to buy them (or short them).
The Snapchat IPO, expected as early as march, could value it at between $20 billion and $25 billion dollars. This would be the largest U.S tech IPO since Chinese e-commerce giant Alibaba group Holding Ltd. made its debut at a $168 billion valuation in 2014. However, we will not know for sure how much each share would cost, nor would we know how many shares they will issue until the IPO has officially been executed. The share price will equate to the market capitalization of the firm (total value of the firm), divided by the amount of shares outstanding (total shares issued).
As far as the spectacle goes, they have released Snapchat spectacles with a built in camera on opposite corners of the eyes. However, Snapchat ingeniously are not selling them in stores, but rather are storing them in these “Snap Bot Vending Machines” which are placed randomly across the U.S.
“two have been in LA while the other two have been in more far-flung corners of the country. One showed up in Big Sur, on the California coast, and the other in Oklahoma at the Blue Whale of Catoosa — one of the more famous attractions on Route 66,” according to EnGadget.
These spectacles are valued at $129.99 plus tax, and are even being resold on ebay from $300 to even $4500. Though this brilliant marketing strategy is keeping people suspense, they better switch up their strategy before people get tired of it.