Snapchat IPO: Is this the New Tech Bubble ?
Snap Inc. i.e. the parent company behind the messaging application Snapchat just went public in the early days of 2017. This was not an ordinary IPO by any means. Snapchat shares rose 44% on the very first day they were listed as there was a mad rush to buy shares on the market. This startup has had the highest tech valuation in Wall Street history. Its beginning valuation has been higher than peers like Facebook and Google.
Investors attached a massive price tag of $29 billion on this startup! While most were happy that Wall Street indices were going higher and investors were making money, a few critics were very skeptical. The underlying notion is that Snap Inc. doesnt deserve to have nearly as much valuation as it has been given. In this article, we will analyze the Snapchat valuation to understand whether this is indeed the beginning of a new tech bubble!
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