Will Snap Pop? Investors Seem Skeptical
Snap Inc., parent of the hot disappearing-message app Snapchat, has a lofty valuation, hordes of coveted young users and social cachet. It also has a lot of Wall Street investors who aren’t buying the hype.
“The argument here is, ‘We’re going to build this huge audience and monetization will follow,’” said Rett Wallace, chief executive at Triton Research LLC, whose firm collects and analyzes data on companies. He added that before looking at Snap’s prospectus, many investors were hoping for answers about how to make money off Snapchat’s growing user base. Now there is a question about whether Snap can build that huge audience, he said.Read full article at wsj.com