Before Snap's IPO, I declined when asked to make predictions. But I did say what I thought would be the best for venture-backed companies in the long run. It is a small pop on IPO day followed by a months-long drag down to a reasonable valuation.
The small pop would signal healthy IPO conditions. The slow run down would show investors aren't in full-throttle bubble mode. We got the pop, plus some, as well as the the drag down, albeit sooner and faster than expected. If SNAP continues to between here and the offering price we can still chalk this up as a win for SV.
(Keep in mind, Facebook--whose revenues grew 54.2% from FYE 2015 to FYE 2016--trades at 14.4x FYE 2016 revenues. That implies a $5.82bn valuation for Snap. It's trading at a $30.4bn valuation, or 5x higher.)
The small pop would signal healthy IPO conditions. The slow run down would show investors aren't in full-throttle bubble mode. We got the pop, plus some, as well as the the drag down, albeit sooner and faster than expected. If SNAP continues to between here and the offering price we can still chalk this up as a win for SV.
(Keep in mind, Facebook--whose revenues grew 54.2% from FYE 2015 to FYE 2016--trades at 14.4x FYE 2016 revenues. That implies a $5.82bn valuation for Snap. It's trading at a $30.4bn valuation, or 5x higher.)
[1] https://www.google.com/finance?q=NASDAQ%3AFB&fstype=ii&ei=4-...
Disclaimer: this is not investment advice. Please don't be a numpty and buy or sell securities based on Internet comments.