Toward the end of 2016, Snap (formerly known as Snapchat) became the latest of the social media companies to enter the public market. With 161 million engaged users but little in terms of current revenues & big operating losses, Snap fills the bill as a company with lots of potential but plenty of peril. In this post, I tell my story for Snap and the value that emerges from it. It is, for the most part, an optimistic story of a young company that has found a niche in the crowded social media space. In my story, Snap will not and should not try to be the next Facebook but I also see it as avoiding becoming Twitter Redux. Tell your own story and make your storyline into a value!
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/SnapIPO.pdf
Blog Post: http://aswathdamodaran.blogspot.com/2017/02/a-snap-story-valuing-snap-ahead-of-its.html
Links
Snap Prospectus:https://www.sec.gov/Archives/edgar/data/1564408/000119312517029199/d270216ds1.htm
Snap IPO valuation (my base story): http://www.stern.nyu.edu/~adamodar/pc/blog/SnapIPOFeb2017.xls
Snap as Facebook Light: http://www.stern.nyu.edu/~adamodar/pc/blog/SnapFacebookLite.xls
Snap as Twitter Redux:http://www.stern.nyu.edu/~adamodar/pc/blog/SnapTwitterredux.xls
Snap Simulation: http://www.stern.nyu.edu/~adamodar/pc/blog/SnapSimulation.pdf
