Many investors will want to buy Snapchat stock when it has an IPO. This is because the company continues to gain in popularity and add users at an astonishing pace which will mean the stock should be in high demand when it goes public. Until then though, investors will have to wait patiently because it is a private company with no stock symbol (not CHAT or SNAP). The latest information is that Snapchat has already secretly filed for an IPO and hopes to go public sometime in the first quarter of 2017. Additional reports say that Goldman Sachs and Morgan Stanley have been chosen to lead the IPO but no official announcement has been made from Snapchat itself.
Snapchat has stormed out of the pack of social media contenders to become a favorite among the under 35 crowd where it gets more than 85% of its users. Since that group is the one of the most lucrative for advertisers to target, Snapchat’s steady growth and popularity makes it one of the most anticipated IPO’s in late 2016 or 2017.
In September 2016, the company has renamed itself as Snap Inc. and come out with its own brand of sunglasses called Spectacles. But these $130 “Spectacles” aren’t normal sunglasses as they have cameras on each side and are designed to allow users to effortlessly take 10 second videos that will automatically be posted to their Snapchat accounts. The glasses are cool (nothing like the failed Google Glass) and are due to come out by the end of the year 2016.
How To Buy Snapchat Stock – You Will Need A Stock Broker
In today’s Internet world it is easy and free for anyone to sign up to an online discount broker. You will have to open an account and put money into it before you can buy Snapchat’s stock or any other stock on an American market. You have a choice of more than ten brokers to choose from and the list of the most popular ones include OptionsHouse, E*Trade, Merrill Edge, Schwab, TD Ameritrade, TradeKing, Scottrade, and many more.
The main differentiator between those brokers is the fee they charge for each trade which can vary from about $5 to $10 depending on which broker you choose. They all are established brokers with years of service and your money should be safe with any of them. OptionsHouse gets consistent high rankings in Barron’s yearly survey of brokers and since it charges one of the lowest fees ($4.95 per trade), it is a good pick for investors of any experience level.
Once you open an account with a broker, make sure to take the next step which is to fund the account. “Funding” is the word used to mean put money in and you can do it through a variety of methods which will be clearly explained. Only after funding your account will you be able to buy stocks online.
Snapchat Is Getting Closer To An IPO
Before any company can go public, it is in their best interests to be making money and be able to show that revenue growth is on a clear path upwards. Snapchat seems to be going in that direction because in mid 2016 it is being reported that it is turning on the spigot when it comes to monetizing its service. This shows the company might be getting serious about an IPO which in all likelihood would take place in 2017.
Snapchat is clearly trying to be friendly to advertisers by not only opening up a lot of opportunities for them to use the service but also by offering many ways for them to succeed. Ad creation tools, buying flexibility, and a variety of ways to see how ads are performing will all help advertisers make their campaigns profitable. Snapchat seems to be increasingly committed to growing revenue towards the eventual goal of becoming one of the top social media platforms.
Investors who want to buy Snapchat stock should be convinced the company will do better than Twitter which is a stock that has struggled mightily and appears to be a stagnant platform. Snapchat needs to continue to grow in popularity and show that it is more than a fad and that users will stay with the service, something Twitter has been unable to do.
Social media stocks get a lot of attention due to many people using them everyday and that makes investors extremely familiar with the companies. Snapchat is one that has differentiated itself from the rest and appears poised to have a successful IPO whenever it decides the time is right. Whether the stock will ultimately be a good investment though, is something that is impossible to determine at this early stage.