What Is the Snapchat Stock Price?

Snapchat stock price The Snapchat stock price will be set between $14 and $16 per share, but there still isn't a set Snapchat IPO date.

So before the IPO, we wanted to make sure Money Morning readers know everything there is to know about Snapchat.

Here is what you need to know about Snapchat, its latest IPO filing, and whether Snapchat stock is worth buying.

What Is Snapchat?

Snap Inc., the parent company of Snapchat, calls itself a "camera company."

But most users view it as a social media site.

Snapchat is an app that allows users to send videos or pictures to friends. The app allows users to edit their messages with drawings, doodles, animations, and filters.

These messages can be viewed for up to 10 seconds and then will disappear.

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Users can also add their posts to a "Stories" section, where friends and followers can view the content repeatedly for up to 24 hours. Snapchat also created a "Memories" section in July 2016, which allows users to store snaps to either share or view later.

Because of its popular features, Snapchat has roughly 160 million daily active users (DAUs).

And because of its growing user base, Snapchat is generating millions of dollars in advertising revenue...

Snapchat's Revenue Is Soaring Ahead of IPO

In 2015, Snapchat generated $58 million in revenue. For 2016, Snapchat generated $404.5 million.

That's a year-over-year increase of 597.41%.

Snapchat stock symbolFor 2017, 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.

However, Snapchat is not yet profitable...

In 2015, Snapchat lost $327.8 million. In 2016, Snapchat lost over $514.6 million.

That's a 56% increase in losses in just one year.

So you shouldn't buy SNAP stock just because it's increasing its revenue.

Here's more on why Snapchat should be considered a speculative investment at best...

The Snapchat Stock Price Could Be Extremely Volatile

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Money Morning Chief Investment Strategist Keith Fitz-Gerald views the Snapchat IPO as speculative because retail investors assume all the risk of investing in an IPO.

"When you buy shares of a publicly traded company, you are paying what the market will bear and you risk everything. There isn't an investment banker on the planet who gives a damn about whether or not the investing public makes a dime on the IPO. Your sole purpose is to guarantee that they get their capital first," Fitz-Gerald said on Nov. 21, 2016.
The IPO offering price is only available to wealthy and institutional investors. Retail investors are forced to wait and buy at the market price on opening day, which is much higher.

For example, big institutions and large banks were able to buy shares of the Twilio Inc. (NYSE: TWLO) IPO for $15 per share before its June 23, 2016, IPO.

When TWLO stock opened to retail investors on June 23, 2016, for $23.99 per share, these wealthy investors had made a profit of 59% in the first few minutes of trading.

"You and your money are literally last in line... behind founders, lawyers, angel investors, venture capitalists, and investment bankers, every one of whom gets a cut of your money. Again - and I cannot stress this strongly enough - as they cash out on your dime," Fitz-Gerald said.

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