Snapchat now said to be valued at $17 billion during latest funding round
Today, Snapchat has become a must-have app for teens. Filters allow users to see themselves on the screen as a glamorous cat, or a beefy motorcycle cop with shades, or as a princess. A member can put his or her Snaps together to create a Story. A new picture added to a Story gives Snapchat subscribers the opportunity to view this particular Story an unlimited number of times over a 24 hour period. By default, a user's friends can view his/her Story, and that can be expanded to include everyone.
This is capitalism at its finest. Money flows to the company with the better mousetrap, and the wonderful multiplier effect that happens when a company is taken public makes millions for investors. If all goes right, some of those newly coined millionaires will be Snapchat employees who never thought that a simple messaging app would make them fabulously wealthy. This is how 40 Apple employees and early investors became millionaires on December 12, 1980 when Apple went public.
The same routine happens over and over; if there is one thing to be learned, it is that Wall Street is all about repeating patterns. The names change as do the players, but the game itself remains the same. Those backing Snapchat are in line for a big payday down the road. Let's hope that they don't turn into capitalist piggies.
Snapchat's revenue surged to $59 million last year, with estimates for this year ranging from $250 million to $350 million. For 2017, we could see $500 million come into Snapchat's coffers. The app had 110 million daily active users during December 2015, up 50% from the 74 million subscribers that made a daily trip to Snapchat during December 2014.