The Snapchat IPO value is starting to become a good sign of success, however, recently leaked controversial emails might smear the company's reputation. Snapchat is steadily prepping to take on tech giants such Facebook and Google.
There aren't any tech companies that decided to debut on the stock market this year. With that being said, this gives high chances of success at the market, for the Snapchat IPO.
According to LosAngelesTimes, Snapchat's initial low $17 share value could ensure its price hike in the following days. While this implies there's big opportunities for the company, there's no assurance of its longevity.
The source mentioned that there's no certainty that Snapchat's user growth will steadily develop. On top of that, the company's revenue from ads is quite shaky as well.
Stock analyst Rob Sanderson mentioned that the Snapchat IPO and company business models are still "a long way from profitability." Sanderson added that the reason the company's value is so big is because it has an "enormous opportunity" in advertising.
However, a recent advertising deal might have possibly dented the company's reputation. An email leak from Mic shows a controversial deal between Snapchat and non-profit anti-gun organization Everytown for Gun Safety, might raise some eyebrows.
Everytown is hoping to run a live story showing the negative effects of firearm use to victims who have suffered losses. When Snapchat heard of this, they offered to partner with them by advertising the event on their platform.
Snapchat sales head Rob Saliterman warned Everytown that they might include an ad from the pro-gun group, National Rifle Association. Saliterman added that if the non-profit organization wanted to get rid of conflicting ads, they would need to pay a $150,000 fee for their services.
This resulted in Everytown turning down all of Snapchat's offers altogether. Would this incident devalue the Snapchat IPO? Highly unlikely, but it would leave a bad impression in the minds of many.
