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Right now, Snapchat plans to price shares between $14 and $16 each.
That means Snap Inc. (NYSE: SNAP), the parent company of Snapchat, values its company between $19.5 billion and $22.2 billion.
But Snapchat recorded a net loss of $514.6 million in 2016, which is why investors are asking us why Snapchat has such a massive valuation.
Snapchat Stock Could Soar from Future Revenue Growth
Snapchat's skyrocketing revenue is why the Snapchat IPO is the most hyped public offering of 2017.
This year, Snapchat is projected to generate between $936 million and $1 billion in revenue. By 2018, Snapchat is projected to generate between $1.76 billion and $2 billion.
Not bad for a company that launched in 2011.
In comparison, Twitter Inc. (NYSE: TWTR) launched in 2006, and it took Twitter nine years to generate $2 billion in revenue.
That's because in Snapchat's SEC filing, it said it "may never achieve or maintain profitability."
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That's why I asked Money Morning Director of Tech & Venture Capital Research Michael A. Robinson how to play Snapchat stock on the Snapchat IPO date.
Here's what he said…