You're confusing the subject of potential with the subject of valuation. If Snapchat goes public at a valuation anywhere near its current private market valuation, the revenue potential will be more than built in to the valuation, with minimal discount for risk I might add.
As a public equities investor, this is entirely unappealing unless you believe that Snapchat could deliver a multiple far in excess of comps like Facebook and Twitter and at a time when valuations are already so rich.
At this point in the cycle, I do not believe it would be wise to be chasing an issue that has retail investor appeal but minimal revenue. If you're bullish on social, you could do a lot worse than to invest in the company that has the best working model.
that's why it has the valuation it has. the valuation is pricing in the potential . People thought Google and Facebook would not deliver, but they did. Maybe snapchat will, but maybe not. I think they will.
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You're confusing the subject of potential with the subject of valuation. If Snapchat goes public at a valuation anywhere near its current private market valuation, the revenue potential will be more than built in to the valuation, with minimal discount for risk I might add.
As a public equities investor, this is entirely unappealing unless you believe that Snapchat could deliver a multiple far in excess of comps like Facebook and Twitter and at a time when valuations are already so rich.
At this point in the cycle, I do not believe it would be wise to be chasing an issue that has retail investor appeal but minimal revenue. If you're bullish on social, you could do a lot worse than to invest in the company that has the best working model.
that's why it has the valuation it has. the valuation is pricing in the potential . People thought Google and Facebook would not deliver, but they did. Maybe snapchat will, but maybe not. I think they will.