The Snapchat IPO, now that we have a good idea it will happen this year, is a hot topic and one that investors from around the world are interested in. It is setting up to be the most publicized IPO since Alibaba and it will bring in a lot of investors who have never bought a stock before. Just like what happened with the IPO’s of Alibaba, Facebook, and Twitter before it, many novice investors will buy Snapchat stock as their first stock.
Unfortunately, in my opinion, that might not turn out too well.
A couple of days ago, after giving the world its first look into the financials and some of the inner workings of Snap, investors can now get a much better idea of what they will be investing in if they buy the stock on opening day. While that IPO filing is more than 40 pages of sometimes very boring and difficult reading, its too bad most people will never take a good look. What they find might make them think twice before getting caught up in the hype.
Below I am linking to some of the analysis/thoughts/articles from a variety of publications that have taken a closer look into what Snap filed on 2/2/2017. Most of these links will take you to articles that are much easier to read and understand than the filing itself and they all are negative on the stock. I suggest anyone thinking of buying SNAP at least read these to become fully aware of the risk.
**Please note that I will not personally be buying Snap stock at its IPO. I am not suggesting what you should do but only trying to make you more aware of the risks should you decide that you might want to buy it.