Can Snapchat’s Culture of Secrecy Survive an IPO?
Investors who buy into public offerings know it’s riskier to bet on a company with a shorter financial history. That’s why the IPO process is so critical: It’s the coming-out party when the company unveils why it’s worth owning the stock. Potential investors will come to Snapchat with more skepticism. The last major social media debut, Twitter Inc., generated a lot of excitement on Wall Street, but the company’s later performance proved that a popular, influential product doesn’t necessarily indicate long-term revenue and user growth.Read full article at bloomberg.com