Tag Archives: IPO

Is the Stock Market Over-Exuberant for Snap?

3 Mar

Snap Inc. is a U.S.-based technology and social media company that was started in 2011 .Products include the popular Snapchat app and Spectacles eye wear; it also owns the Bitmoji app.

Yesterday (March 2, 2017) was a big day for Snap Inc. and the tech industry overall because of Snap’s highly anticipated IPO (initial public offering) on the New York Stock Exchange. Some analysts are excited at the popularity of this IPO; others wonder whether investors are being overly exuberant. What do YOU think?

As reported by CNBC:

“Snap soared as much as 45% when it opened for trading at $24 a share on Thursday. Market makers at the New York Stock Exchange indicated the stock was set to open from $23.50 to $24.50 a share. At 200 million shares, Snap raised $3.4 billion and was valued at nearly $24 billion as of its pricing. Sources had told CNBC earlier this week that investors were expecting a pricing of $17 to $18 per share, above the $14 to $16 per share range originally given by the company. The IPO is 12 times oversubscribed, sources said Thursday morning, meaning that there were 12 times more orders for than there were shares offered. Some managers told CNBC they got as little as 2 percent of what they were asking for.”

 

Yet, Felix Richter commented thusly for Statista:

“Snap’s IPO valuation of $24 billion is quite a tall order for a company that has never turned a profit and warned investors that it never might. The company is now valued at 59 times its total revenue for 2016. Even for a fast-growing tech company that is a lot. Facebook in comparison has a price-to-sales ratio of around 14. As our chart illustrates, Snap is valued considerably higher than many American household names. That includes companies such as Ralph Lauren and Harley-Davidson that have been around for decades and probably will be for decades to come.”

Infographic: Snap Is More Valuable Than These Household Names | Statista You will find more statistics at Statista

 

Etsy: A Pioneering B Corporation

17 Apr

Etsy is an innovative online retailer. On April 16, 2015, Etsy had a successful IPO (initial public offering), which valued the firm at $3.3 billion as of the end of the day.

Its company philosophy is described at its Web site:

“Etsy is a marketplace where people around the world connect, both online and offline, to make, sell, and buy unique goods, The heart and soul of Etsy is our global community: the creative entrepreneurs who use Etsy to sell what they make or curate, the shoppers looking for things they can’t find anywhere else, the manufacturers who partner with Etsy sellers to help them grow, and the Etsy employees who maintain and nurture our marketplace.”

“Discover handmade items, vintage goods, and craft supplies you can’t find anywhere else. Get curated recommendations tailored to your taste. Find boutiques, craft fairs and flea markets where you can shop from Etsy sellers offline.”

What makes Etsy especially unique is its status as a “B” corporation:

As a Certified B Corporation, we view our social, environmental, and business goals as inseparable. Some call this ‘business as unusual,’ but around here it’s just business. We don’t just recycle and compost in every office, we know exactly how much our trash weighs and we bike our compost to community farms every week. We provide entrepreneurial training for artisans looking for new ways to support themselves and their families. We give our employees five days a year to spend volunteering in their communities. And that’s only what we have room to mention here.”

 
Look below to see one what analyst (NBR) has to say about the firm’s business model.
 

 

Twitter Going Public

16 Sep

Twitter has just announced that it will be undertaking an IPO (initial public offering) in the near future. Here’s the full announcement (as a tweet, of course), in less than 140 characters: “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.”

With this in mind, click on the image to view an Inc. interview by online firm  Mobi with Biz Stone, a Twitter co-founder, on the story of Twitter.

 


 

What Now for Facebook?

16 Aug

I hate to keep piling on (see, for example: http://evansonmarketing.com/2012/07/28/the-weak-financial-performance-of-social-media-no-surprise), but today’s Facebook news continues to be a downer. Now, that many previously-restricted shares are eligible to be sold (with the resale of even more shares to be unrestricted in coming months), the stock price remains vulnerable. Earlier today, the share price dropped to $19.69 (from its $38 opening).

A LOT of ad and other revenue growth will be necessary to move Facebook’s financials forward.

What do you marketers suggest that Facebook do to turn around its short-run and long-run revenue and profit prospects?

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