The yellow ghost of Snapchat will enter Wall Street. On Thursday, February 2, the California start-up, which changed its name to Snap Inc. at the end of September, formalized its next IPO. The proceeding was initiated in November 2016, but was previously confidential, as permitted by US regulations. The operation could take place in early March. As for Twitter, it will be held on the New York Stock Exchange (NYSE), not on the Nasdaq.

Snap hopes to raise 3 billion dollars (2.8 billion euros). This amount could be adjusted based on investor interest.

According to the American press, the company would also aim for a valuation of up to 25 billion dollars, This would be the largest public offering of an American high-tech company since Facebook, in May 2012.

The prospectus filed with the US Securities and Exchange Commission (SEC), highlights the company's recent monetization progress. But it also raises several questions about its ability to attract new users and find the path to profitability.


These two elements could complicate the task of the executives of Snap whereas the financial markets are showing more and more demanding, especially since the disappointed hopes raised by Twitter. The reception reserved by Wall Street will be mainly observed.

In Silicon Valley, many companies hope that a successful operation will, in turn, allow them to go public.

Snap Inc. business

Last year, Snap achieved a turnover of $405 million, seven times more than in 2015. Its mobile application, known for its photos and videos that disappear after a few seconds, seduces a growing number Reaching younger audiences (87% of US users are under 35) and more active than other platforms.

It also offers them more creative ways to interact with their readers, such as custom animations and filters. The app has recently added new ad targeting options, especially based on interests.

The ability to monetize its business is still embryonic internationally, with only $49 million in revenue last year. 'It will not be too difficult for it to look for growth when the company develops its presence outside the United States,' said Brian Wieser, an analyst at Pivotal Research. The firm eMarketer thus expects a turnover close to one billion dollars this year.