Snapchat Files for IPO
Snapchat, also known as Snap Inc., has been a private company up until this point. However, Evan Spiegel, Bobby Murphy, and Reggie Brown recently made a change in regards to their incredibly popular mobile app. Snapchat filed for initial public offering (IPO), meaning that the stock of the company is now available to the public.
The company will be making its stock market debut this March. Snapchat’s latest move is a great way to gain popularity among older demographics. Snapchat has always been popular with younger consumers, especially those between the ages of 18 and 24. These young consumers can often be unpredictable when it comes to social media, if an app doesn’t hold their interest then they’ll have no problem getting rid of it and moving onto the next big thing.
Near the end of 2016, Snapchat reached 70% of 18-24 year olds, but merely 23% of people over the age of 25. Other social media platforms, such as Facebook, appeal to more than just a young demographic. In order to keep up with the ranks of other social networks, Snapchat’s recent decision is sure to help lure in an older demographic and keep the social media platform relevant.
Regardless, Snapchat’s decision to file for IPO is a risky move. Snapchat is still a young, rapidly growing company, but that doesn’t mean it will continue to grow at the same rate. As for whether or not Snapchat’s decision will pay off, only time will tell.