The IPO of Snap is just a day away, and despite criticism regarding the voting structure of the shares being offered and the company’s expectations that investors who get in on the IPO hold the stock for at least a year, interest in the stock is high. According to the WSJ, the IPO is expected to price in a range of $17 to $18 per share, which is above the original target range of $14 to $16 and would value the company at around $25 billion. What is interesting about some of Snap’s messaging in the last few weeks is how it has been trying to move away from branding itself as a social media company and instead as a camera company. Even this morning, we saw stories about how the company has been working on a possible drone.
Haven’t we heard something similar to this before? All this talk from Snap about positioning itself as a mix between a social media and a camera company brings up memories of GoPro, but from the other direction. GoPro was originally a camera company and tried to woo new investors by branding itself as a social media play. Now, we have Snap starting off as a social media play trying to position itself as a camera company. Even the reports of a possible drone coming from Snap is similar to a ‘leak’ from Go-Pro back in May 2015 teasing investors that the company was working on a drone of its own. When that news came out, the stock saw an initial bounce, but the rally was short-lived. For those investors looking to get in on Snap tomorrow, let’s hope that since Snap is moving in the opposite direction as GoPro (social media company trying to position itself as a camera company rather than a camera company trying to position itself as a social media play), the outcome for the stock is in the opposite direction as well.