Breakingviews: Snap’s IPO momentum could be hard to break

Breakingviews
Jeffrey Goldfarb
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CEO and co-founder of Snapchat Evan Spiegel
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Snapchat's momentum could be hard to break. The soon-to-go-public messaging app whose photos vanish is seeking a valuation lower than the $20 billion or so TechCrunch reported for its most recent private fundraising. A conservative approach to pricing its shares may pique even more interest. Despite fading user growth and poor governance, the hype surrounding Snap and a dearth of new stock issues mean investors are unlikely to disappear.

Snap, the parent company of Snapchat, indicated on Thursday that it would pitch its shares at between $14 and $16 apiece, implying a market capitalization between $16.2 billion and $18.5 billion. After last year's investment round, media reports suggested Snap might be aiming for a figure closer to $25 billion in its initial public offering.

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