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

Jeffrey Goldfarb

CEO and co-founder of Snapchat Evan Spiegel
Getty Images

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.

More In Pro News and Analysis

CNBC Pro Powell rekindles the inflation trade with comments. Here’s what’s working in sell-off
CNBC ProArt Cashin on the Fed, ‘If the market believes they lost control, that’s just as dangerous.’
CNBC ProAs Nasdaq goes negative for the year, watch out if you own these high-multiple shares