Venture capitalist Gene Munster says Snap will be 'more like Twitter than Facebook'

Venture capitalist Gene Munster spoke with CNBC about the upcoming Snap IPO, and whether it could be a viable investment.

Snap Inc., owner of the messaging application Snapchat, will price its initial public offering after the close on Wednesday, potentially commanding a valuation of as much as $25 billion.

"I think the next year is going to be challenging because probably this is going to feel more like Twitter than Facebook," said Munster, in reference to the volatility around Twitter shares since the microblogging company went public in 2013.

During its filing with the SEC in February, Snap admitted it may never achieve profitability.

Munster says the hype around the stock, however, has pushed valuations to levels that may not be sustainable. Snap is valued at 30 times next year's revenue compared with Facebook, which was valued at 19 times back on its IPO in 2012, according to Munster's estimates.

"This is an expensive stock, so I think it's going to be choppy for the next year," he emphasized.

Munster co-founded Loup Ventures in January. Previously, he was a prominent Piper Jaffray technology analyst for 21 years and known for his in-depth coverage of Apple.

In this conversation, Munster is joined by Jason Calacanis, founder and CEO of, who also weighs in on where Snap could be headed.

Only PRO members have access to this full interview.