Snapchat is losing a ton of money, what does this mean?
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Snapchat has filed paperwork for its initial public offering (IPO) and is seeking $3 billion dollars, giving them a value between $20 - $25 billion.
But not all is sun and rainbows in paradise, apparently Snapchat lost $514.6 million in 2016. This is stark contrast to Facebook which already had a billion dollars in profit when they when public.
What do you think this means for Snapchat? Is it doomed to be acquired by a more profitable company? Will they need to attract a wider, more profitable audience? Change their model to attract more advertisers?